Report

CSR Promotion Department
6-4, Otemachi 2-chome, Chiyoda-ku, Tokyo 100-8370, JapanTEL 03-6636-9511 FAX 03-6636-9550
URL https://www.furukawakk.co.jp/e_index.htm
Published in November 2021

Management Philosophy (Established August 8, 2015)
The Furukawa Company Group will remain indispensable to society by always embracing thespirit of challenge, advancing the technologies that have underpinned the foundation ofsociety that originated in mining development.
Action Guidelines (Established August 8, 2015)
In order to live up to our Management Philosophy, we put our Action Guidelines of Innovation,
Creativity, and Harmony into practice, always bearing in mind the three key words that best
represent the spirit of our founder: Luck, Stolidity, and Perseverance.
Innovation We will work constantly at self-innovation by embracing a future-oriented mindset.
Creativity We will seek to create reliable, appealing products that meet market needs.
Harmony We will improve management transparency and contribute to the development ofa society that is in harmony with the environment.

Vision for 2025

FURUKAWA Power & Passion 150“Become a corporate group that leverages its reputation for category
leadership and uniqueness to deliver growth.”- Targeting consolidated annual operating income regularly in excess of ¥15 billion as weapproach our 150th anniversary in fiscal 2025. -Policies for Achieving Vision for 2025
1 Increase the value of the Furukawa brandthrough “marketing-based management”
that incorporates CSV* perspectives

We will incorporate marketing into the core ofmanagement to provide products and services
recognized as valuable in changing markets, as well as
to resolve issues and problems faced by customers,
with the aims of increasing corporate value andachieving sustained growth. We will also strive toachieve the Sustainable Development Goals (SDGs)
and otherwise resolve various social issues, including
such domestic issues as building national resilienceand the declining working-age population, and thus
help realize a sustainable society.
①Reinforce technological sales capabilities(proposals and solutions) reflecting customer needs②Develop products, technologies and services thatmeet market needs③Achieve category-leading positions by concentratingon niche products that have competitive advantages
and using differentiation strategy④Cultivate and create new markets and productcategories, and build a new business model⑤Enhance our products, technologies, and services,which underpin our social infrastructure, to help
resolve social issues* CSV: Creating shared value (CSV) is a management framework thatenables companies to co-create social value and corporate value by
tackling social, environmental, and other issues.

1

2 Sustainably expand the Machinery Business①Reinforce revenue bases in growing overseas
markets, mainly in business related to infrastructure
and resource development②Strengthen and enhance stock business③Maximize business opportunities by demonstrating
comprehensive Group competences andreinforcing engineering strengths
3 Strengthen and expand our humanresource bases①Build vibrant human resources and corporate
culture for a new Furukawa②Secure, utilize, and develop diverse humanresources in Japan and overseas③Put even more effort into training sales andmarketing personnel

4 Actively promote investments to increase

corporate value①Make proactive capital investments necessary for growth②Expand business through strategic M&A and alliances

5 Establish a robust corporate foundation①Increase corporate value by improving profitability andcapital efficiency, targeting ROE of more than 10%②Establish a strong financial base③Achieve balanced appropriations between
investments for growth and return to shareholders④Increase corporate value by emphasizing businesspractices that reflect CSR/ESG issues recognized
and to be solved by the GroupCSR Report 2021
Editorial Policy
In order to remain indispensable to society, the Furukawa
Company Group makes efforts to contribute to resolvingsocial issues and achieving SDGs. We created this report tocommunicate the Group’s approach to CSR and our social
initiatives, environmental initiatives, and other activities topromote CSR to our stakeholders in a straightforward manner.

Report Period
This report mainly covers results from fiscal 2021 (April 1, 2020
to March 31, 2021), but also initiatives from the past as well assome from fiscal 2022.
Note that the organization and titles are current as of July 31, 2021.

Report Scope
Environmental Data
Manufacturing Division of Furukawa Industrial Machinery
Systems Co. Ltd.; Takasaki Yoshii Works of Furukawa Rock
Drill Co., Ltd.; Sakura Works of Furukawa Unic Corporation;
Iwaki Works, Semiconductor Material Production Section(Semiconductor Material Plant), and Optical Parts Works
Production Section (Optical Parts Plant) of Furukawa Denshi
Co., Ltd.; Osaka Works of Furukawa Chemicals Co., Ltd.; Ashio
Office of Furukawa Co., Ltd.; Furukawa Castec Co., Ltd.; Ashio
Rock Drill Co., Ltd.; and FRD Iwaki Co., Ltd.
Environmental Accounting
Environmental data report scope, Advanced Technology
Department and Material Research & Development
Department of Furukawa Co., Ltd.
Other
Furukawa Co., Ltd. and consolidated subsidiaries

Guidelines Referenced• “Sustainability Reporting Standards” by the Global
Reporting Initiative (GRI)• “Environmental Reporting Guidelines, 2018 Version”
by the Ministry of the Environment• “Environmental Accounting Guidelines, 2005 Version”
by the Ministry of the Environment• “JIS Z 26000: 2012 Guidance on Social Responsibility(ISO26000: 2010)” by the Japanese Standards Association

Company Names
Furukawa Co., Ltd.:The operating holding company of the divided core
operating companies
Furukawa Company Group:
32 consolidated subsidiaries and 5 equity method affiliates
Core operating companies:
Furukawa Industrial Machinery Systems Co., Ltd.,
Furukawa Rock Drill Co., Ltd., Furukawa Unic Corporation,
Furukawa Metals & Resources Co., Ltd., Furukawa Denshi
Co., Ltd., Furukawa Chemicals Co., Ltd.

CONTENTS
Message from Chairperson Miyakawa

3Interview with President Nakatogawa

4■ Special FeatureCore Operating Company Initiatives for SDGs
Machinery Business: The Rock Drill Machinery
Segment Helps Develop Social Infrastructure with
Machinery for Tunnel Construction

7

Materials Business: The Electronics Segment
Contributes to the Realization of a Prosperous
World with Aluminum Nitride Ceramics

9■ CSR of the Furukawa Company GroupCSR as It Relates to the Furukawa Company
Group’s Business11

Contributing Through Products and Services

13

CSR Management

15■ Activity Reports

グループガバナンス体制のグループガバナンス体制のグループガバナンス体制

グループガバナンス体制のGovernance and Management

Customer Relations

Environmental Efforts

Employee Relations

グループガバナンス体制の
17
グループガバナンス体制のコンプライアンスの強化
コンプライアンスの強化
コンプライアンスの強化

コンプライアンスの強化
コンプライアンスの強化
グループガバナンス体制
コンプライアンスの強化
お客さまとの関わり
お客さまとの関わり
21

お客さまとの関わり
お客さまとの関わり
お客さまとの関わり
お客さまとの関わり
コンプライアンスの強化
環境への取り組み
環境への取り組み
環境への取り組み
23
環境への取り組み
環境への取り組み
環境への取り組み
お客さまとの関わり
従業員との関わり
従業員との関わり
従業員との関わり
従業員との関わり29
従業員との関わり
従業員との関わり取引先との関わり取引先との関わり
環境への取り組み
取引先との関わり

Supplier Relations

Community Relations

取引先との関わり取引先との関わり取引先との関わり
33
株主・投資家との関わり
株主・投資家との関わり

従業員との関わり

株主・投資家との関わり
株主・投資家との関わり
株主・投資家との関わり
株主・投資家との関わり
地域社会との関わり
地域社会との関わり

35
取引先との関わり
地域社会との関わり
地域社会との関わり

地域社会との関わり
地域社会との関わり

Shareholder and Investor Relations

株主・投資家との関わり
36

Report Publication Date
November 2021 (Previous: November 2020, Next: Scheduled for
November 2022)

Corporate Information

地域社会との関わり

37

2

Interview with President Nakatogawa

Message from Chairperson Miyakawa

Further strengthening our business foundation under a new order,and engaging in marketing-based management that incorporates
the precepts of CSV to contribute to the realization of a sustainable
society

Naohisa Miyakawa
Chairperson & Representative Director

In June 2021, I became the Chairperson & Representative
Director of the company, and Minoru Nakatogawa assumed
the position of President & Representative Director.
During my eight-year term as President that began with
my appointment in June 2013, we retooled our philosophy
in 2015, clarifying our vision for the company as follows: tocontinue to be a company that is indispensable to society.
We also enacted the company’s first long-term vision—
Vision for 2025 “Furukawa Power & Passion 150”—which
we have worked to achieve through efforts to innovate.
We divided the time remaining until the 150th anniversaryof the company’s founding in 2025 into three phases, andbackcasted to set interim goals. The performance indicators
in Medium-Term Business Plan 2019, which outlined Phase
1, included consolidated operating income of 8.5 billion yen,a target we achieved in both fiscal 2019 and fiscal 2020.
Phase 2 began in fiscal 2021, a year in which we had our3sights set on further expanding profits. However, the onsetof the global coronavirus pandemic forced us to postpone
the publication of the next Medium-Term Business Plan
2022. Instead, we published matters such as management
strategies and priority issues in Medium-Term Management
Policy 2022, and are presently promoting the policy.
However, because the pandemic shows no signs ofending anytime soon, we now view fiscal 2022 and fiscal
2023 as a time to solidify our business foundation withan eye toward achieving Vision for 2025. This is why thedecision was made to entrust the diligent strengthening of
our standing over this two-year period and the transition into
Phase 3—the last phase of Vision for 2025, starting in fiscal
2024—to a leader from the next generation; after receiving
the report from the Nomination & Remuneration Committee,
which comprises mainly Outside Directors, I passed thebaton to President Nakatogawa.
In addition to impressive strength of spirit anddecisiveness, President Nakatogawa is broad-minded andtrustworthy, and I am confident that he will succeed me on
the path to reform and drive the company forward with evenmore momentum.
My role as Chairperson in the new order is obviously
to support President Nakatogawa at every turn, and I will
leave all aspects of management to his strong leadershipcapabilities, thereby devoting my energy to solving problems
to achieve the goals of Vision for 2025 that remain from mytime as President. We will focus our efforts on those goals,
which include digital transformation as well as themes
related to sustainability throughout society, namely the drive
to become carbon neutral.
Companies must be indispensable to society; theycannot survive unless they contribute to society. We willcontinue to engage in marketing-based management thatincorporates the precepts of CSV, and will support people’s
livelihoods in different areas around the globe and press
forward toward the achievement of a more sustainable
world under our philosophy to continue to be a company
that is indispensable to society.
I sincerely hope that each and every one of our
stakeholders holds great expectations for our growth aheadand continues to endow us with their support.

Summoning our resolve to explore
every last frontier and achievesustainable improvement ofcorporate value in order to continue
to be a company that is indispensable
to society

Minoru Nakatogawa
President & Representative Director

Q. What are your ambitions as you assume theposition of President?

I intend to channel my leadership skills into advancing ourreforms with a greater sense of urgency en route to achieving
Vision for 2025.
Since assuming the office of President & Representative Director in
June 2021, I have decided anew to change the Furukawa Company
Group while remaining fully aware of the weight of the responsibilityof my position.
The world remains as full of upheaval as ever. Amid further
increasing awareness of the importance of sustainability for resolving
global environmental issues, and the growing severity of social issues
such as depopulation in Japan, the forward march of digitalizationand technological innovation continues at an unimaginable speed.
Additionally, the persistence of the pandemic continues to cause theglobal economy to stagnate while the longer-term effects on social
life remain immeasurable. We humans are confronting a wide range
of issues; we have challenged our accepted beliefs and changed ourvalues and lifestyles, and the world will continue to transform evenfaster in the future.
However, the task ahead remains unchanged. We still aim
to achieve Vision for 2025 “Furukawa Power & Passion 150”
established by the Group in 2015. Vision for 2025 depicts the ideal
image of our company 150 years after our founding. Specifically,
even as the world changes at a dizzying pace, we aim to embody

our philosophy to continue to be a company that is indispensable
to society. I refuse to relax on the path we started traveling under
Chairman Miyakawa, and intend to channel my leadership skills into
advancing our reforms with a greater sense of urgency.

Q. What is Furukawa Company Group’s
significance to society?

The Group’s role and mission in society is to utilize its amassed
technologies—as well as the technologies advanced anddeveloped by innovating and combining them—to resolve
today’s social issues.
Over the 146 years since the Group’s founding as a mining company,
we have aimed to transform, diversify, and otherwise reform our manybusinesses, manufacturing the machines used in tunneling, civilengineering and architecture, mining, factories, sewage treatment
plants, and other worksites to establish the infrastructure of Japanand many other nations, and providing products, technologies, andservices that include high-quality chemicals and materials such ascopper and other electronic materials needed for developing into anadvanced, information-oriented society.
Furukawa Co., Ltd. was established to engage in the businessof copper mining, and throughout our history, we have continuously
supported the modernization of Japan and achieved growth
together with society while also earnestly tackling social issues. At
the time of our founding in 1875, Japan was in the midst of industrial4

To p I n t e r v i e w

Q. What were the outcomes of CSR activities
in fiscal 2021, and what are the upcoming
challenges to promoting such activities?

development, and the copper mining business was a key industry
that influenced Japan’s growth. Amidst these circumstances, thecompany has continuously supported Japan’s growth by instigating
technological innovations through the introduction of rock drills andother mining machinery from overseas, and by building the Ashio
Copper Mine into the nation’s largest in terms of output.
Copper mine development was a national policy priority, but
the manifestation of pollution problems forced us to the brink of a
shutdown. Our precursors faced these issues head-on, and developed
new pollution controls, by-product recycling technologies, and othertechnologies and methods, and worked together with local communities
and other stakeholders toward resolutions of the problems.
I am proud that the inclination to make earnest efforts to resolve
social issues remains a part of the Group’s DNA. For example,
battery-driven UNIC cranes conserve energy and make less noise,and have also helped improve work environments because they do
not emit any exhaust. The fully automated drill jumbos we released
last year have not only ensured worker safety by automating
excavation work at mountain tunnel construction sites, but havealso streamlined and increased the precision of perforation work,
improving productivity and helping resolve issues such as thedifficulty of securing skilled workers.
Accordingly, the Group’s role and mission in society is to utilize
its amassed technologies—as well as the technologies advanced
and developed by innovating and combining them—to resolve
today’s social issues. These activities successfully contributeto the resolution of social issues, and are a practical example ofmarketing-based management that incorporates the precepts of
CSV,* which the Group is pooling its efforts to promote. I hope toincrease our corporate value by continuing to constantly interpretthings from the customer’s perspective, grasping the problems
they are facing as well as invisible issues and needs, and leveraging
the Group’s strengths to provide value to society.
* Creating Shared Value (CSV) is a management framework that enables
companies to simultaneously create social value and corporate value by
tackling social, environmental, and other issues.

5

We aim to incorporate the angle of sustainability into our
corporate management, and establish a new order for acompanywide response.
We are formulating our Ideal Image for CSR 2025 to accompany
Furukawa Power & Passion 150, our Vision for 2025, the 150th
anniversary of our founding. We have also formulated and arepromoting activities toward CSR Medium-Term Goals (fiscal 2021–2023) based on backcasting.
Due to the pandemic, we were unable to make progress onsome activities as planned in fiscal 2021, but committees, leaddepartments, and others were able to steadily implement activities
under the direction and supervision of the CSR Promotion Meeting.
Among the main outcomes of the activities are (1) the promotionof activities for quality assurance and product safety under theGroup’s new Quality Assurance Management Department, (2) the
formulation of basic policy and guidelines for preventing bribery andcorruption, (3) the revision of supplier CSR questionnaire survey
items based on the results of surveys given to major suppliers, and(4) the revision of our personnel evaluation system.
However, we must take steps to resolve issues that require
the efforts of the entire company, including responding to climatechange-related risks and the drive to become carbon neutral,and due diligence for human rights. Toward that end, we areestablishing an administrative system to comprehensively addressrisks to the Group. In light of changes to the business environment,
we will incorporate the angle of sustainability into our corporate
management, and establish a new order for a companywide
response based on a sense of unity between corporate andoperations departments in order to resolve issues that weredifficult to take action on under our previous vertically orientedorganizational structure and departments.
These reforms will keep us moving ahead on activities in Phase
2 (fiscal 2021–2023).

Q. How, specifically, are you addressing climatechange-related risks?

We will identify the risks of climate change and theirimpact on business activities, and respond accordingly byincorporating them into our business strategies in order tocreate sustainable value for the Group.
In October 2020, the Japanese government made a Carbon
Neutral Declaration in which it stated the goal to achieve virtuallyzero greenhouse gas emissions by 2050. We are rushing into anage of decarbonization, and we envision that the shift to a societythat is conscious of the balance between the economy and theenvironment will accelerate even more.
In order to create such a society, we need both innovation

and research and development for achieving carbon neutrality.

of solidarity and invigorate both the individuals and the company

The Group already provides products that contribute to CO2

as a whole. We modified our personnel evaluation system in fiscal

reduction, but we will capitalize on our push for marketing-based
management that incorporates the precepts of CSV to provide
products, technologies, and services that substantially reducegreenhouse gas emissions, thereby contributing to the realizationof a decarbonized world.
We are also aware that investors focus on business strategies
and risk management capacity as it pertains to climate change,
and that they demand that companies disclose climate-related
information.
The Group views the risks brought on by climate change asmajor problems for business continuity, and sees responding toclimate change as an urgent issue. For example, floods, typhoons,and other natural disasters caused by climate change inflict damageon the Group’s production locations and suppliers, bringing many
conceivable risks not only to our procurement and product delivery,
but also to our distribution and other business activities. We must
identify the risks of climate change and their impact on businessactivities, and respond accordingly by incorporating them into ourbusiness strategies in order to create sustainable value for the Group.
Toward that end, we will make efforts on all manner ofmeasures including energy-saving and capital investment, andwork to disclose information as recommended by the Task Forceon Climate-related Financial Disclosures (TCFD).* Specifically, weare considering launching a new organization to consider andexamine these matters. As the person responsible for managing
the Furukawa Company Group, I will take the lead in driving these
considerations forward with a sense of urgency.

2021 in order to bring this vision to fruition. We also shifted to asystem that facilitates communication and gives superiors andtheir subordinates ample opportunities to talk to each other andexchange feedback, all in an effort to leave employees with agreater sense of acceptance from their evaluations.
Accordingly, the ambition and pride each and every
employee has in their work is the source of the company’s ability
to improve operations and meet customers’ expectations. When
we have achieved those goals, we feel a sense of accomplishment
for having helped customers and society, which helps the Group
continue to be indispensable to society.

* TCFD: Task Force on Climate-related Financial Disclosures. Established by
the Financial Stability Board (FSB) at the request of the G20 to consider thedetails of disclosing climate-related information and the response of financial
institutions.

Q. What is your basic approach to humanresources strategy?

Q. If you would, please conclude with amessage to the stakeholders.

To fulfill stakeholders’ expectations, we aim to embody
our philosophy of continuing to be a company that is
indispensable to society.
To grow sustainably amid the upheaval of the business environment,
we must have a shared vision and come together as a Groupto advance our reforms. Toward that end, we will leverage theexperience and technologies we have cultivated to date to press
forward in pursuit of our Vision for 2025, with power and passion,and on the strength of the Group’s distinct marketing-based
management that incorporates the precepts of CSV. The mostimportant thing is for every Group employee and officer to summon
their resolve to explore every last frontier in order to achieve thevision. This is why I, too, will do my very best, drawing on my hopes
for the future as well as my resolve to face whatever is ahead.
To continue to fulfill the expectations of each and every
stakeholder, we aim to embody our philosophy of continuing to be
a company that is indispensable to society.

I believe the ambition and pride that each and every employee
has in their work connects to the concept of helping society,thereby creating a company that is indispensable to society.
For the Group to continue to grow sustainably, I believe it is essential
to utilize our diverse human resources and promote a wider arrayof work styles to create motivating work environments that put us
in a position to maximize each and every employee’s capabilities
and create new value. We are also making efforts to recruit andtrain talented people based on the Group’s growth strategies.
This fiscal year, we conducted an employee engagement
survey. The intent was to earnestly listen to employees’ views anduse them to undertake various reforms, but the underlying aim
was to become a company where people feel inspired by theirwork. I believe this kind of company is a place where employees
can immerse themselves in their work and gain a sense offulfillment. It is also a place where they can voice their opinions
to their colleagues and the rest of the company to create a sense

6Furukawa’s contributions
to achieving SDGs

Core Operating Company Initiatives for SDGs
Special Feature

1

Main Characteristics of Furukawa Rock Drill Machinery

Machinery Business: The Rock
Drill Machinery Segment Helps
Develop Social Infrastructure with
Machinery for Tunnel Construction■Fully Automated Drill Jumbo J32RX-Hi ROBOROCK®
❶ Programming Computers to Position Boreholes with at Least the Same
Expertise as Skilled Workers❶

Railways and roads are vital means of transportation in modern
society. They also contain many tunnels. Furukawa Company❷

Furukawa Rock Drill added an automatic positioning function to the drilling boom which,coupled with the navigation function that guides the boom in line with drilling plans, enables
computer control of automated positioning using the shortest routes.
●Automatic adjustments to the three critical elements of drilling control—impact, rotation, andfeed in response to changes in the bedrock—result in smooth, fully automated drilling, vastly
streamlining and enhancing the precision of drilling work.
●With this productivity-improving technology, drilling work can even be done by one person.
●

Group member Furukawa Rock Drill manufactures and sells
machinery for tunnel construction.

Drill jumbo: Machinery for tunnel construction❷ Ensuring Safety under Many Different Methods

Drill Jumbos and Robotic Devices that Set Steel Ribs are Widely Used in Tunnel Construction Work
Tunnel construction work is performed differently depending on thesoil and other properties of the construction sites. Typical methods
include the mountain tunneling and shield tunneling methods. The
mountain tunneling method is used where the ground is hard, andthe shield tunneling method is suitable for soft ground.
At present, the main form of mountain tunneling is the New
Austrian Tunneling Method (NATM), a method of blasting for which
Furukawa Rock Drill provides many kinds of machinery. Suchmachinery includes drill jumbos, which are tunnel construction
machines for boring tunnel cross-sections and placing rockbolts, and robotic devices called shotcrete machines, which haveerectors attached for installing the steel frames (ribs) of the innersurfaces of tunnels and spraying concrete onto the surfaces.
■For reference: Methods used in tunnel construction (FY2020)

Other

15

Shieldtunnelingmethod

27%

%

58%

Mountain
Source:tunnelingmethod Tunnelling Yearbook,

Japan Tunnelling Association

Tunneling work accounts for about 0.5%*1 of allindustrial accidents in the construction business;more than 96%*2 of those accidents occur near tunnel
faces, which are the front lines of tunneling work.

Promoting Automation ofDrilling Work

Automation of Tunneling Work

❸ Reducing Costs from the Start
to the Finish of Tunneling

Additional costs are generated when construction
work does not progress according to plans (e.g.
construction schedules, planned excavation
ranges, personnel expenses).

Making Progress as Planned
by Automating Work

*1 2019 statistics on industrial accidents from the Ministry of Health, Labour and Welfare*2 2010 study by the National Institute of Occupational Safety and Health, Japan (Steel-rib setting: 43%, Explosive charging: 36%, Excavation: 12%, Spraying concrete: 5%)

Sharing Information about Issues
The construction companies to which the national government,road and railway companies, and others outsource tunneling work
are aware of these kinds of issues; each uses its own methodof conveying its requirements to Furukawa Rock Drill at different
times, such as when explaining policy at general meetings when
the construction work is set to start, or seeking technical guidanceon an individual basis. Additionally, the Ministry of Health, Labour
7❸ Increases Work Operations by Leveraging ICT
Innovations such as leveraging ICT to position steel ribs, eliminating theonsite installation of wire nets and the like, and spraying concrete andsetting steel ribs at the same time have made it possible to set steel ribs
about three times faster than the normal working speed.

❹ Improves Working Precision by Leveraging ICT
Furukawa Rock Drill leveraged ICT to improve the precision of steel rib
positioning and setting, and eliminated the conventional cut-length joining
materials to improve the precision of rib setting in curved tunnel sections.
*3 The work of joining the left-hand and right-hand ribs at the top of a tunnel.

Future Challenges

Furukawa Rock Drill’s Efforts to Resolve Issues During Tunnel Excavation❷ Ensuring Workplace Safety

The steel rib positioning navigation system, which comprises an automatic
tracking total station and more, and the high-performance erector, whichis capable of making minor adjustments to the position of the ribs, make itpossible for one operator to position the steel ribs.
Using one-touch quick joints to fasten crown joints,*3 and spraying concrete
while holding steel ribs in place with pre-installed wire nets and fall-preventing
anchors minimizes the need for workers to work near tunnel faces.

Illustration of collapse near a tunnel face

With a chronically low birth rate and a rapidly aging
population in Japan, retiring skilled workers must be
replaced with less experienced workers, and youth
employment rates are also low. Lack of technicalskills and a shortage of people are both issues.

A sensor■Robotic Devices that Set Steel Ribs

❷ Maximizes Reduction of Work in Dangerous Places

example, differences between
actual and planned blasting
locations can add costs.

❶ Shortage of Skilled Workers

Considering the environment
Out of consideration for the environment, the drill jumbo is equippedwith a clean engine that satisfies the 2014 criteria of the Act on
Regulation, Etc. of Emissions From Non-road Special Motor Vehicles.

❶ Equipped with a Simple Navigation System for
Positioning

Risk of Industrial Accidents in Tunneling Work
Blasting requires that workers perform their work close to tunnel
cross-sections, which are called “faces” and known as places
where industrial accidents tend to occur. These accidents
primarily occur when areas near the faces collapse.
Boring, i.e., drilling holes in tunnel faces, can also have a substantial
impact on safety. Drilling in the wrong place or at the wrong angle
can loosen the ground near the face and cause it to collapse. Drilling
techniques have a substantial impact on overall tunneling work; for

The boom is equipped with two large sliding retractable charging
cages for improved efficiency and safety of work on tunnel faces.
●The three-stage extendable charging boom was designed to allow
work on a supplementary bench up to 4.5 m long, improving
productivity in supplementary and incidental work.
●The sensors sound an alarm and work is halted if anyone tries to enter the space
between the machinery and the tunnel face during automated operation.
●and Welfare has set out safety guidelines for tunneling work (e.g.
Guidelines for Measures to Prevent Tunnel Face Collapse During
Mountain Tunneling Work).
Furukawa Rock Drill is striving to completely automate themachinery used in tunnel construction to make the work economicallyrational in addition to prioritizing safety.

Drilling work is now fully automated, but this does not mean that all
tunneling work is also fully automated; some work must still be done byhand. Specifically, filling boreholes with blasting powder is done by hand
and requires workers to work near tunnel faces as always. Regarding
explosive charging work, there are laws and regulations on blasting workand handling and controlling explosives, but partnerships working toward
amending the laws are also needed in order to make tunneling work safer.
Manufacturers are also looking to automation to solve two issues
with rock bolts, namely safety with regard to mortar injection and somerock bolt insertion work being performed by hand, and, given the long,narrow shape of rock bolts, shortening the time needed to both drill
boreholes for and insert the bolts.
Currently it is difficult for Furukawa Rock Drill to solve these issues
with fully automated drill jumbos, and thus the company has developedand is marketing a dedicated machine called a rock bolter for rock bolt
work. The rock bolter makes it possible to perform the series of tasks
from drilling and mortar injection to rock bolt insertion from the operator’sdeck, with no manual procedures.
Meanwhile, on the issue of safety for robotic devices that set steel
ribs as well, there is still work that must be done by hand. For example,
if we can automate the fastening of crown joints using one-touch quick
joints, we could completely remove the need for workers to work neartunnel faces for rib setting, eliminating the cause of 43% of accidents intunnel construction.
Furukawa Rock Drill intends to continue advancing the frontiers ofautomation technology with the aim of improving safety and productivity.

Comments from Key People
We have advanced mining development technology since the Group’s founding in 1875. Currently,
our technology is being used in the construction of tunnels, an essential social infrastructure.
We believe that our Group’s strength lies in the fact that we have developed technologythat we have passed down since the company’s founding, and established technology
distinct to the Group. We have passed down excavation technology, and continue to use
our own technology to manufacture nearly all parts of the drifters (rock drills) that form thecore of our rock drills. This is an excellent strength to have in the rock drill business.
A major source of our motivation is the fact that we can actually see and use tunnels
and other infrastructure constructed in public works projects using our Group’s machinery
in everyday life.

Furukawa Rock Drill Co., Ltd.
Left: Susumu Murakami, Deputy General Manager, Tunneling& Mining Equipment Department, Marketing Division
Right: Yoichi Koroku, Principal Engineer, Life Cycle Support
Division/Deputy General Manager, Takasaki Yoshii Works

8

Furukawa’s contributions
to achieving SDGs

Core Operating Company Initiatives for SDGs
Special Feature

2

Furukawa Denshi’s AlN Products

Materials Business: The Electronics
Segment Contributes to theRealization of a Prosperous World
with Aluminum Nitride Ceramics■Fillers■Parts■Substrates

Features

Powdery, high heat dissipation

Thermal uniformity, anti-corrosive,
thermal conductivity

High heat dissipation/insulationMaincustomers

Resin manufacturers, heat dissipation
sheet manufacturers

Manufacturers of semiconductor
manufacturing systems and highvoltage power units

Precision machining companies that
manufacture semiconductor lasers
and telecommunication elements

Main products
in which thematerial is used

Silicone and other resin heat dissipation
sheets and sealing material on
smartphones, laptops, automobiles, etc.

Plates and other components of semiconductor
manufacturing systems, high-voltage power
units of railway vehicles and satellites/aircraft

Circuit boards for high-powered laser elements,
high-powered LED (for camera flashes, projector
lamps, etc.), telecommunication module parts

Great advancements in semiconductor device technology havebeen essential in the realization of a prosperous, modern world,from the development of telecommunications technology andthe emergence of hybrid/electric vehicles to the developmentof equipment that uses lasers and reducing railway vehicle
energy consumption. Furukawa Company Group member
Furukawa Denshi Co., Ltd. manufactures and sells aluminum
nitride (AlN) ceramics, which are heat-dissipating components
essential for advanced electronic equipment.

Advancing Electronic Equipment

Efforts Toward Issue Resolution

Semiconductor devices fulfill their role of executing electric power
control in various places and situations. They are a componentof inverters for railway vehicles, and are used in large numbers toelectrify and enhance the safe driving functions of vehicles, andtheir advancement is ongoing.
As semiconductor devices become more advanced, electric
current capacity increases and circuits become complex andnarrow. This results in a greater amount of heat generated, which
has a problematic impact on other types of equipment.

	Trends in the Market for Electronic
Equipment
According to World Semiconductor Trade Statistics (WSTS),developments such as the rapid increase in telecommuting due tothe coronavirus pandemic and the reinforcement of data centers toaccommodate the sudden increase in online traffic explain the dramaticincrease in the volume of data transmission over the internet. Demandfor electronic equipment is expected to increase even more in thefield of telecommunications equipment with the advancement of 5G,
local 5G, and other networks; the deployment of digital technology tomaintain social distance and realize remote, contactless, non-face-toface communication; increased rates of electronic components due toelectrification in the automotive sector; and more. Advancing electronicequipment is essential for accommodating this increasing demand,and improving the heat-dissipation capacity of semiconductor devices
is a challenge to overcome.

Heat Dissipation Issues
Heat dissipation rarely came under scrutiny as a problem in thepast because the semiconductor devices used in electronicequipment were not very heat-resistant to begin with. However, the
New Energy and Industrial Technology Development Organization(NEDO) successfully developed circuit boards made of siliconcarbide (SiC), which is more heat-resistant than conventional
silicon (Si) circuit boards; highly heat-resistant SiC devices known
as “power semiconductors” are widely used these days.
SiC devices can resist heat up to 450°C, which makes it possible
9

A furnace for manufacturing aluminum nitride ceramics

to manufacture slimmer, simplified electronic equipment. However,there are some problems, namely that other equipment near SiC
devices is not as heat resistant, meaning that entire systems do not
function properly if generated heat is not dissipated.

Sharing Information about Issues
Commonly known heat dissipation problems include thedanger of electronic equipment emitting smoke or sparks athigh temperatures, the decline of device operating speeds, theincreased frequency of poor operation and malfunctions, andshorter product lifespans; however, the causes of the problems
differ for each electronic equipment manufacturer.
As Furukawa Denshi mainly sells to manufacturers of partsand materials for electronic equipment, the company cannot deal
directly with the manufacturers of the actual electronic equipment
when they are experiencing problems, making it difficult to identify
the problems. The company has earned customers’ trust by
diligently answering their questions about the properties of thematerials used and consulting to ensure that the components
manufactured satisfy the required specifications, and is now
experiencing a gradually increasing volume of inquiries regarding
the central challenges.

Furukawa Denshi has discovered issues in progress towardachieving practical applications of aluminum nitride. One is strength,
and another is toughness. To resolve these issues, the company
took advantage of an NEDO-subsidized project until last year andworked together with a national university and a national researchand development agency to develop aluminum nitride ceramic
circuit boards with superior mechanical properties (strengthand toughness). Under the development project, the university
handled and developed conditions for additives for improving
properties, Furukawa Denshi used the materials to improve thestrength and toughness of the circuit boards, and the researchand development agency oversaw the underlying research andanalysis, yielding a certain level of results. The company isusing these results in efforts to develop technology for further
enhancing properties and for aspects of manufacturing costs.
The company also intends to answer demand for higher heatdissipation in systems and devices. Furukawa Denshi is exploring
ways to resolve the most pressing issue with aluminum nitride
ceramics—enhancing thermal conductivity. Toward that end,
the company optimized the manufacturing conditions for AlN
to successfully raise thermal conductivity from 230 W/m-K,
which has long been the world’s highest level for polycrystalline
industrial ceramic materials, to 250 W/m-K, and plans to market
the improved material during fiscal 2022.
For AlN, which has high insulation performance, to become
more widely used as electronic equipment advances, it must

accommodate the varied conditions under which the equipment
is used. Toward that end, it is necessary to continue to improve
beyond the mechanical and thermal properties achieved with thelatest efforts of Furukawa Denshi. We may also see the emergenceof semiconductor device circuit boards with higher capacity than
SiC. With the aim of maximizing the functionality of semiconductor
devices, the company is tackling the challenges of improving theproperties of AlN while lowering costs, and striving to develop othermaterials with greater capacity than AlN to help advance electronicequipment and deliver solutions to our customers.
■Thermal
Conductivityof AlN (W/m-K)

Furukawa Denshi envisions an increasingneed for circuit boards with higher thermal
conductivity, and is in the midst ofdevelopment to answer that demand

170
Generic product

230

250

Existing Furukawa
Denshi product

Tested andproven productComments from Key Person
We receive many inquiries from customers experiencing issues with materials. I feel motivated when myinteractions with customers and proposals to use aluminum nitride ceramics result in their gratitude forsolutions to their problems.
AlN makes up only a small part of the Group’s business. “Ceramics” may sound like a procedure for
producing advanced chemical products, but it actually includes areas where baking things in furnaces isthe only way to find out what will happen. We are proud of the trust we have earned from the market on thestrength of the distinct technology we have painstakingly established through 30 years of trial and error, tothe point where we now receive countless inquiries about AlN. We intend to continue providing thoughtful
responses and suitable proposals that engender trust and solve customers’ problems, thereby contributing
to the realization of a prosperous world.

Teruo Kawashima, Chief Engineer,
Sales Section, Sales Division,
Furukawa Denshi Co., Ltd.

10

CSR of the Furukawa Company GroupCSR as It Relates to the Furukawa Company Group’s Business
The Furukawa Company Group’s Management Philosophy is embodied in its CSR activities. Since commencing operationsin the copper mining business in 1875, we have worked constantly at achieving self-innovation by embracing a futureoriented mindset. At the same time, we have sought to create reliable, appealing products in order to consistently address
the needs of the times. In the process, we have developed multiple businesses and made significant contributions to theadvancement of Japanese industry.
In order to persist as a company that plays an essential role in society going forward, we will contribute to thedevelopment of a sustainable society that is in harmony with the environment, while also improving our managerialtransparency, further strengthening our manufacturing capabilities for the future, and enhancing communication with ourvarious stakeholders.

Corporate Social
Responsibility

Management
Philosophy

2030

2025

Development of a Sustainable Society

Ideal Image for CSR 2025

Medium-term CSR Goals (Fiscal 2021–2023)

The Furukawa Company Group will develop andestablish a risk management framework that
extends beyond crisis management.

Three-step approach to addressing social issues

All officers and employees will be keenly aware ofcompliance as it applies to international community.

STEP

1

Contribute through business processes

STEP

2

Contribute through products and services

STEP

3

Contribute in partnership with stakeholders

Vision for 2025
Management
Plan

Medium-TermBusiness Policy 2022
(Fiscal 2021-2023)

Expedite growth andfurther improve profitability[SDGs: Sustainable Development Goals]

Promote environmental and safety activities(Reduce environmental impacts, protect environment andensure safety, protect biodiversity, publish environmental andsafety activity outcomes, and continue working to ensure there
are no accidents or disasters at suspended or abandoned mines)
We aim to improve brand strengths of Furukawa
products and achieve top rankings in product categories.
Expand and Strengthen our human resource bases
We will develop rewarding work environments
where it is possible to create new forms of value
by maximizing the abilities of each and every
employee
We will pursue a QCD* approach based on
CSR-oriented procurement practices geared toachieving sustainable manufacturing and sales of
products that earn the trust of our customers.

■ Helping to address challenges

encountered worldwide

In September 2015, the United Nations General Assembly
adopted its Sustainable Development Goals (SDGs) andpresented an action plan for human and environmental
prosperity. The SDGs consist of 17 goals and 169 targets
looking toward 2030, such that help clarify priority
global-scale issues and a worldwide vision related tosustainable development and are intended to encourage
global-scale initiatives to address those issues.
The Furukawa Group strives to help achieve the SDGs,
established by the international community, through its
business activities and efforts geared to fulfilling its corporatesocial responsibilities.

■Medium-term CSR Goals
Committee / Department

Medium-term CSR Goals (Fiscal 2021–2023)

Committee / Department

Medium-term CSR Goals (Fiscal 2021–2023)●

Risk Management Committee●

Develop the Group-wide crisis management framework●

Develop the Group-wide risk management framework

Improve product quality(1) Strive to reduce and eliminate complaints about products
1. Strengthen change points control
2. Make efforts to improve quality at the stage of development and design
3. Eliminate repetitive complaints

Compliance Committee●

Improve awareness of the importance of thorough compliance●Spread awareness of the Charter of Corporate Conduct and the Code of Conduct for Officers and Employees●

Improve and expand guidelines and manuals●

Expend every effort toward timely, appropriate reporting of compliance violations●

Promote the continuous improvement of environmental performance (CO2, water, waste, chemical substances)* Improve (Respond to) publication measures for releasing environmental performance results and activity reports in consideration ofEnvironmental & Safety
Management Committee

trends in ESG investment, requirements for SDGs, and more●

Improve on-site strengths●

Strengthen the efforts for eliminating accidents and disasters●

Protect biodiversity

Quality Assurance Committee(2) Improve awareness of quality assurance
1. Add to and improve training to raise minimum skill levels
2. Improve systems for sharing information between segments
3. Strengthen quality assurance management in overseas procurement and factories●

Human Resources & General
Affairs Department

Purchasing Department

Improve safety(1) Revise and improve product safety evaluation systems●

Develop human resources●

Promote health and productivity management●

Promote diversity●

Improve work environments●

Strengthen CSR procurement systems●

Strengthen supplier management systems (QCD + CSR)●

Strengthen internal CSR activities*QCD: Quality, cost, and delivery

1112CSR of the Furukawa Company Group

Contributing through Products and Services
A closer look at everyday life reveals the Furukawa Group’s products and technologies
in action in readily recognizable places. The Group’s products and technologies touch
every aspect of our lives, making them convenient and prosperous, and protecting thesafety and security of society.

■ UNIC cranes

These truck-mounted cranes areused on construction sites andthe like.

■ Electrolytic copperThis substance is used in the wires,
copper pipes, and other components ofhousehold appliances, communication
devices, and automobiles.

■ Electrostatic precipitators
This equipment prevents air
pollution from plants and otherfacilities.

■P umping equipment at
wastewater treatment facilities

We have a wealth of experience with thisequipment at wastewater treatment plants andwater treatment plants throughout Japan.

■ Mini crawler cranes

These machines crush rocks into
smaller pieces at quarry.

■ Belt conveyors■ Hydraulic breakers

This equipment transports massive
amounts of earth and sand, ore,coal, and other raw materials.

These machines are used tobreak rocks and crush concrete.

■ Tunnel drill jumbos■ Enclosed suspended conveyors

These machines are used for the
Linear Chuo Shinkansen and otherconstruction projects.

These conveyors are used to close off
and vertically transport materials.

■ Hydraulic crushers■ Ocean cranes

These machines are used to tear down
concrete and structural steelwork inbuilding demolition and the like.

This high-purity metal is used as araw material for mobile equipment
and lasers.

13

These machines drill holes forblasting at stone-crushing plants
and limestone mines.

■ Crushers

Outside Japan, these cranes areused on construction sites forskyscrapers and the like.

■ High-purity arsenic■ Hydraulic crawler drills

These machines are used in oyster
farming and unloading catchesfrom vessels.

■ AlN ceramics
These materials are used to counterthe extra heat produced by higherperformance electronic equipment.

■ Cuprous oxide
This eco-friendly substance isused to coat the undersides ofmarine vessels.

■ Bridges and steel structures
We construct pedestrian bridges,
motorways, and more.

■ Coils

Filter coils are used to control noisefrom electric control units and powersources.

■ UNIC carriers
Trucks that carry new cars anddamaged cars.

14

CSR of the Furukawa Company GroupCSR Management
The Furukawa Company Group promotes corporate social responsibility (CSR), while reinforcing its governanceframework and compliance practices, with respect to its business activities such that have involved full-scale■Identifying Priority Issues

Priority issues regarding CSR

Page

Developing a robust corporate governance framework

P17

manufacturing and structural development carried out thus far, as well as various other activities particularly

The Group identifies important issues and reinforces its CSR

Enhancing complianceP20

involving environmental protection, social contribution, and human resource development.

activities to ensure that its business activities contribute to society

Providing products and services that engender customer satisfaction

P21

Promoting environmental conservation initiatives

P23

in the broader sense.
To identify CSR priority issues, we selected important CSR-

■Framework for Promoting CSR
At the Furukawa Company Group, we actively engage in CSR initiatives, particularly through efforts that have involved establishing the CSR
Promotion Meeting at Furukawa Co., Ltd. in order to vigorously promote such endeavors, clarifying our responsibilities to stakeholders, andidentifying priority issues that need to be addressed.
Sessions of the CSR Promotion Meeting are held by Furukawa’s CSR Promotion Department, acting as the secretariat, and chaired by
Furukawa’s President and Representative Director. The meetings primarily act as a forum for discussions on various issues related to CSR,
particularly with respect to formulating fundamental policies, promotion frameworks and action plans, verifying and evaluating the status ofinitiatives, and planning priority measures.
The CSR Promotion Meeting’s organizational structure consists of four committees (Risk Management Committee, Compliance
Committee, Environmental & Safety Management Committee, and Quality Assurance Committee) and two departments (Human Resources& General Affairs Department and Purchasing Department). It takes a PDCA cycle approach to planning, implementation, evaluation andimprovement, in coordination with respective Group companies and respective Company departments, which take on the function of
executing CSR initiatives.

related issues from the perspectives of both stakeholders andthe Group, then analyzed and evaluated the importance of thoseissues and finalized the Group’s CSR priority issues.
The pages of the Activity Report detailing our CSR activities

Creating pleasant workplace environments for employeeswith fair performance evaluations and incentives
Building fair and just business relationships and reciprocal
trust with suppliers

P29
P33

provide information on priority issues regarding the Furukawa

Promoting corporate social responsibility

P35

Company Group’s CSR.

Communicating with shareholders and other investors

P36

Steps to identifying
priority issues

Extract issues

Evaluate importance tostakeholders and theGroup

Analyze theimportance of issues

Decide and approvepriority issues

Reporting

CSR Promotion Department(Secretariat)

Committee / Department

Interaction

Risk Management Committee
Compliance Committee

Human Resources &General Affairs Department

Environmental & Safety
Management Committee

Purchasing Department Guidance /instruction

Quality Assurance Committee
Reporting

Implementation body
Reports at each PDCA stage

Guidance /instruction

Group companies / departments

CSR Promotion Meeting

President and Representative Director

CSR Promotion System

Plan

Formulate the planDo

Execute the plan

Check Check the outcome

Risk
Revise and improve Group BCP and the BCP of core
Management ❷operating companies
Committee

Stakeholders

Responsibilities

Stakeholders

Responsibilities

Customers

We shall provide customers with safe, high-quality
products and services in order to increase satisfactionlevels.

Employees

We shall create safe, healthy, and motivating workplaces inwhich our diversified human resources can excel while adopting
appropriate evaluation standards and fair incentives.

Business
partners

We shall build and maintain mutually beneficial relationships
conducive to harmonious coexistence through stable procurement
activities based on the principles of fairness and economic rationality.

Local
communities

We shall build and maintain favorable relationships oftrust by pursuing social contribution activities aimed atharmonious coexistence with local communities.

Shareholders
and investors

We shall work to maximize corporate value throughcommunications focusing on timely and appropriate
information disclosure and IR activities.

Globalenvironment

We shall protect biodiversity by developing environmentally friendly
technologies and products while minimizing the environmental impact of ouractivities through savings of energy and resources and reduction of waste.

❶ Reduce the number/cost of complaints
Quality
Assurance
Committee

Examine countermeasures for crises other than❸ earthquakes❷ Conduct compliance checks
Revise internal reporting system in response to❸ amendments to the Whistleblower Protection Act
Establish systems for compliance with the Act on the❹ Protection of Personal Information, etc.

❶ Develop human resources
Human❷ Promote healthy and productivity management
Resources& General
Affairs❸ Promote diversity
Department❹ Improve work environments

Continuous improvement of❶ environmental performance (CO2, water,
waste, chemical substances)

Activities
Promote training/guidance for improving
involving❷ practical skills
environmental
conservation,
Enhance preventive measures forhealth, and ❸ eliminating accidents and disasters
safety.
Environment& Safety❹ Promote biodiversity protection activities
Management
Committee
Improve on-site strengths by imparting❶ knowledge and skills
Monitorsuspended or
Maintain mine wastewater treatment❷ facilities
abandonedmines
Service final disposal sites and❸ underground mines❷ Improve product safety❸ Strengthen quality assurance systems❶ Expand compliance training (continued)

Compliance
Committee

In the course of strengthening our CSR activities and implementing our Management Philosophy, we have identified our stakeholders as
follows: customers, suppliers, shareholders and other investors, employees, local communities, and the global environment. Moreover, we
aim to build relationships of trust and accordingly maximize our corporate value by engaging in appropriate communications that involve
clearly conveying our responsibilities to each group of stakeholders.

15❶ Improve response capabilities in event of a crisis

Action Take countermeasures
as necessary■Relationships with Stakeholders

Further information on CSR management
https://www.furukawakk.co.jp/pdf/CSR/e/csr_01.pdf■Fiscal 2022 Targets for Respective Committees and Relevant Departments

Launch the second CSR questionnaire survey for major❶ suppliers

Purchasing
Department❷ Enhance management of major suppliers (QCD + CSR)
❸ Foster partnerships with suppliersContinue Group-wide CSR-oriented procurement❹ activities

16Relevant
SDGs

Governance and Management
グループガバナンス体制の強化

コンプライアンスの強化

Corporate Governance
お客さまとの関わり

Basic Approachand Director remuneration; the Committee reviews the matters andreports back as necessary.

環境への取り組み
The Furukawa Company Group maintains fundamental policies
regarding corporate governance with respect to heightening
managerial transparency,
building an effective managerial framework
従業員との関わりthrough ongoing efforts to transform its corporate structure,
increasing its corporate value by generating consistent profits, andcontributing to its shareholders and other stakeholders.
取引先との関わり●Executive Officer System
Executive Officers perform their tasks according to business plans
determined by the Board of Directors, and report the status ofbusiness execution as appropriate to the Board of Directors and theManagement Committee. The Company has 15 Executive Officers
as of June 29, 2021, including three concurrently serving as Directors.

●Management Council and Management Committee

Corporate Governance System
株主・投資家との関わり
The Furukawa
Company Group’s operating holding company
Furukawa Co., Ltd. has adopted the system of a company with
Board of Directors and Audit & Supervisory Board, and throughthem supervises
business execution. The Company also employs an
地域社会との関わり
Executive Officer system which facilitates quicker decision making
and defined responsibilities in terms of keeping management
supervisory functions separate from executive functions.

The Management Council sets the Group’s fundamental management
policies and strategies, and makes decisions on important matters.
Key managerial issues addressed by the Management Council arereferred to the Board of Directors for discussion and decisions.
Meanwhile, the Management Committee meets monthly to reporton the business execution of the Company and its core operatingcompanies, and accordingly reviews such matters and provides
direction in that regard.

●Directors and Board of Directors●Audit & Supervisory Board and Its Members

The Board of Directors, which is chaired by the Chairperson &Representative Director, holds regular meetings once a month,and extraordinary meetings as necessary, to supervise the Group’s
overall business execution. The Board consists of nine members asof June 29, 2021, including three Outside Directors.

The Audit & Supervisory Board determines matters regarding Audit& Supervisory Board Members’ execution of duties, including
auditing policy, and methods of investigating determining executive
operations and financial circumstances. Pursuant to audit policy
formulated by the Audit & Supervisory Board, Audit & Supervisory
Board Members attend important meetings including those of theBoard of Directors and the Management Council, listen to reports
from Directors, conduct field investigations at business sites andsubsidiaries, and more to audit the execution of operations by
Directors and others. As of June 29, 2021, the Audit & Supervisory
Board consists of four members, including two Outside Members,
and meets as appropriate.

●Nomination & Remuneration Committee
The Company voluntarily established the Nomination & Remuneration
Committee, which comprises mainly Independent Outside Directors,
as an advisory body to the Board of Directors. The Board of Directors
consults the Committee about matters regarding candidates for
Director and Audit & Supervisory Board Member, the appointment
and removal of Representative Directors and Responsible Directors,

Further information on Furukawa Company Group audit system
https://www.furukawakk.co.jp/pdf/CSR/e/csr_19.pdf●Corporate Governance Structure
Shareholders’ Meeting
Appointment and dismissal

Appointment and dismissal
AuditsDirectors
Board of Directors
Reporting
Supervise
Nomination &Remuneration Committee

Consultation

Reports

Appointment and dismissal

Audit & Supervisory Board Members Collaboration
Audit & Supervisory Board

Reports

AuditsCollaboration

Accounting Auditors

Collaboration

Business execution
Representative Director

Reports

Internal Audit Department
Accounting Dept., others

Management Council
Management Committee

CSR Promotion Meeting

Internal Control Division

Executive Officers

AuditsAll Divisions, Departments, and Group Companies

Audits●Outside Directors and Outside Audit &Supervisory Board Members
The Company appoints people with a wealth of experience, expertise,and objective perspectives in various fields to the positions of Outside
Director and Outside Audit & Supervisory Board Member, thereby ensuring
the validity of our business decision-making and the effectiveness of thesupervision and auditing of our business management. As of June 29,
2021, the Company has three Outside Directors and two Outside Audit& Supervisory Board Members, four of whom are Independent Officers
as stipulated by the Tokyo Stock Exchange.

●Evaluating the Effectiveness of the Board of Directors
To analyze and evaluate the effectiveness of the Board of
Directors, the Company conducts questionnaire-based annual
surveys of Directors and Audit & Supervisory Board Members, andexchanges opinions with Outside Officers. The results of these
activities are reported to the Board of Directors for discussion.
In fiscal 2021, average evaluations improved compared to theprevious fiscal year, and action was taken on nearly all mattersidentified as priority issues for improvement. Additionally, thefollowing five efforts will be implemented in pursuit of further
improvement: (1) Simplifying and clarifying information to beentered on documents to facilitate digitization, (2) Regularly
providing information about industry trends and the like, (3)Adding supplementary explanations on opinions and the like ofManagement Council meetings regarding the agendas of theBoard of Directors, (4) Exchanging opinions about management
challenges at social gatherings of Representative Directors andOutside Directors, and (5) Sharing more information about thebusiness of each company in the Group.

Internal Control System
The Group’s Basic Policy on Establishing an Internal Control
System encompasses corporate governance, risk management,compliance, and internal audits. Under the policy, internal controls
are to be implemented with an emphasis on promoting CSR, in
addition to ensuring efficient and appropriate business execution.
Moreover, the Group continually reassesses its internal control
systems and otherwise strives to build effective and efficientsystems in order to ensure the appropriateness of operations.

Message from an Outside Independent Director
In 2019, I assumed office as an outside independent director, a position responsible for checking on the Company’s business
management. Since then, I have endeavored to approach my duties as a university faculty member with a specialty inbusiness strategy theory and technology management theory. This means reframing the Company’s business conditions andmanagement issues within the context of management theory, comparing them with similar cases, and candidly raising anyquestions or opinions that may emerge from this process at meetings of the Board of Directors. In my own way, I seek toprovide different perspectives, such as by looking at seemingly complex realities through a theoretical framework or by findingout what other industries or companies have done to address similar management issues. The current business environment ischanging on a daily basis, and the future is increasingly uncertain. Under these conditions, many companies, not just our own,
are faced with a difficult task in steering their business. Additionally, some of the business issues discussed at meetings of theBoard of Directors have a considerable impact on our future earnings structure and corporate growth. Of course, we examine
these management issues in detail and make fair judgments. However, we also try to consider the potential ripple effects ofdecision-making and how to create value for the Group in the future.
Naturally, a single decision will have a certain impact on various stakeholders. From the perspective of corporate social
responsibility, it is essential to consider any ripple effects on these stakeholders and how to address them. Accordingly, we will
work together to develop policies and initiatives aimed at building a company that can evolve side by side with its stakeholders,
including employees, as well as a company where employees exercise their abilities to the fullest and find meaning in their jobs.
Creating value for the Group’s future is also an important task in order to enhance
corporate value. We have six core operating companies that range in scope frommachinery to materials. What these businesses have in common is a Groupwide goal of“contributing to the formation, maintenance, and development of social infrastructure.”
Our original copper mining business made significant contributions to the formation of
the foundations of modern Japan and the development of industry. Similarly, each of theGroup’s current businesses supports various aspects of social infrastructure in Japan andaround the world. Without forgetting these core elements, which could be consideredthe very reason for the Company’s existence, we will take on individual challenges while
aspiring to be an organization that can continually create new value. At the same time, I
would like all employees, from young to senior, to actively think about and propose how
they can contribute to future social infrastructure in each of the Group’s businesses, andI hope that they will further advance the development of the technologies, products, andservices needed to achieve this.
Going forward, we will remain committed to building a corporate group that can makeKazumi Nishino
ongoing contributions to society.
Outside Independent Director

Further information on corporate governancehttps://www.furukawakk.co.jp/pdf/CSR/e/csr_08.pdf

1718

Relevant
SDGs

Risk Management
Ideal image for 2025

Relevant
SDGs

Compliance

The Furukawa Company Group will develop and establish a risk
management framework that extends beyond crisis management.

Ideal image for 2025

PLAN & CHECKAll officers and employees will be keenly aware of compliance as it applies
to the international community.

PLAN & CHECK

Fiscal 2021 targets and assessments

Achievement

Improve response capabilities in the event of acrisis.

★★

 evise and improve Group BCP and the BCP ofR
core operating companiesIdentify and examine countermeasures for risks
other than earthquakes

Fiscal 2022 targets

Fiscal 2021 targets and assessments

AchievementImprove response capabilities in event of a crisis

Upgrade and expand compliance training (continued)★★

★

 evise and improve Group BCP and the BCP ofR
core operating companiesC reate and revise compliance manuals and guidelines ★★

★

Identify and examine countermeasures for risks
other than earthquakesR evise systems for sharing information on compliance ★★★
★★★Target achieved; ★★Target partially achieved; ★Target not achieved★★★Target achieved; ★★Target partially achieved; ★Target not achieved

DO

The Group’s business activities could potentially be badly impacted
by various risks related to such factors as accidents, natural disasters,
and epidemic diseases. To protect human life and property andminimize damage and loss when such risks materialize, the Group,
spearheaded by its Risk Management Committee, is working toestablish and strengthen its risk management system.

● Risk Management System●Implementing Business Continuity Management (BCM)
Core operating companies have finished formulating BCP, andhave begun making partial revisions to respond to organizationalchanges and the like. From now on, we will also devote energy toimplementing BCM.

Initial Response Manuals, and Implementing BCP
We have finished formulating initial response manuals, and have
now turned our attention to implementing BCP.

President & Representative Director

Group-wide Identification of Potential Risks

CSR Promotion Meeting
Guidance/
instruction

Furukawa Co., Ltd.

Reporting

CSR Promotion
Department (secretariat)

Risk Management Committee

Human Resources & General
Affairs Department (secretariat)

Business Risk Review
Sectional Meeting

Furukawa Co., Ltd. Each department
Furukawa Industrial Machinery Systems Co., Ltd.
Furukawa Rock Drill Co., Ltd.
Furukawa Unic Corporation

Furukawa Metals & Resources Co., Ltd.
Furukawa Denshi Co., Ltd.
Furukawa Chemicals Co., Ltd.

* Group companies represented in the Business Risk Review Sectional Meeting are thesame as those represented in the Risk Management Committee.

Implementing Business Continuity Planning (BCP)●Developing Preventive Measures for BCP
To prepare for emergency situations in which normal means ofcommunication are not available, we are establishing transceivers
at key locations and reviewing the content and management
methods of emergency supplies including food and beverages.

●Conducting Safety confirmation drills and Disaster reporting drills
We regularly conduct both safety conformation drills enlisting oursafety confirmation systems and disaster reporting drills with theuse of transceivers in order to ensure that we are able to promptly
confirm employee safety and the status of damaged sites should
an emergency occur.

We are identifying the potential risk of earthquakes, floods,
landslides and the like at key locations and moving ahead withthe formulation of BCP with regard to risks that could substantially
impact our business.
Head
officeOyama
Takasaki
SakuraTochigi Works Yoshii Works Works

Osaka
Works

Iwaki
Works

Conduct compliance checks
Revise internal reporting system in response toamendments to the Whistleblower Protection Act stablish systems for compliance with the Act on
E
the Protection of Personal Information, etc.

Promoting Compliance

Company’s stance on preventing bribery and corruption, which

In addition to complying with laws and regulations, the Groupto the world, and set out explicit procedures for preventing bribery

was outlined in the Code of Conduct for Officers and Employees,

believes it has a corporate obligation to take serious andresponsible action in terms of social and ethical aspects.
To fulfill this obligation, we have established the Compliance
Committee, which discusses important matters regarding
compliance. The Committee strives to share information on

prevent bribery and corruption.

Internal Reporting System
early detection and correction of compliance violations.

Compliance Education

This has involved developing a framework that enables anextensive range of reporting and inquires by establishing points of

We strive to instill a corporate culture that emphasizes compliancethrough efforts that include issuing our “Compliance News”
source of information on compliance to all Group officers andemployees, and having top management occasionally give talks
on the importance and priority we place on compliance.

○

○

○

◎

◎

We were unable to gather everyone in one place to conduct

Floods

△

○

○

×

○

×

compliance training in fiscal 2021 due to the pandemic, but weLandslides

×

△

×

×

×

×

were able to use online conferencing systems and stream videos

Tsunami

×

×

×

×

◎

×

to provide training on individual topics.

Typhoons

○

○

○

○

○

○

●Training Implemented in Fiscal 2021
Training[Comment from the Responsible Committee] Overview of Fiscal 2021

Measures to prevent the spread of
COVID-19 infections since the onset ofthe pandemic have forced us to postpone
the sectional meetings and prevented
them from achieving their goals. We
will continue to expend every effort
to prevent COVID-19 infections while
monitoring the state of the pandemic,
and steadily implement actions we wereunable to execute during the last fiscal
Atsushi Takano
year, revise Group BCP throughout the Risk Management Committee
Chairperson, SeniorGroup, and take other steps to improve
Executive Officer, General
our capacity to act when crises emerge. Manager, Human Resources

to spread the word about the policy and guidelines in an effort to

The Group has adopted an internal reporting system to facilitate

the CSR Promotion Meeting as appropriate.

◎

Degree of potential risk: ◎High ○Medium △Low ×Significantly low

and corruption in business activities. We will expend every effort

Groupwide compliance by reporting matters it has discussed to

Earthquakes& General Affairs Department

19

Upgrade and expand compliance training (continued)

DO

Framework for Promoting Risk Management

Core operatingcompanies

Fiscal 2022 targets

contact for reporting and consultation requests inside and outside(law office) the Group. We also stringently safeguard confidential
and personal information regarding whistleblowers.
The Compliance Committee conducts investigations uponreceiving notification or consultation, and subsequently takes
necessary action to address such matters.
We also facilitate awareness of the internal reporting system
by posting such content to our in-house portal site and distributing
brochures to Group officers and employees.
[Comment from the Responsible Committee] Overview of Fiscal 2021

Number ofparticipants(number of sessions)

Compliance training

79 (6)

Training on warranty clauses of construction contracts

71 (1)

Training on joint research/joint development contracts

44 (1)

Training on Basic Guidelines for Preventing Bribery
and Corruption

36(video streaming)

Basic Policy and Guidelines forPreventing Bribery and Corruption
In January 2021, the Furukawa Group enacted Basic Policy
for Preventing Bribery and Corruption and Basic Guidelines forPreventing Bribery and Corruption. The enactment clarified the

In fiscal 2021, we amended Compliance Rules, reconfirmed theroutes for reporting compliance violations, and created a mechanism
for spreading the word about recurrence prevention measures.
Additionally, we successfully enacted Basic Policy for Preventing
Bribery and Corruption and Basic
Guidelines for Preventing Bribery andCorruption. Unfortunately, the pandemic
prevented us from conducting as many
sessions of compliance training as innormal years. In fiscal 2022, we will devoteenergy to improving training provided
through online conferencing systems andvideo streaming, and continue to promote
activities with the goal of equipping all
officers and employees with a keen
Takeshi Miyajima
awareness of compliance as it applies to Compliance Committee Chairperson,
Senior Executive Officer, General
the international community.
Manager, Legal Department

20

コンプライアンスの強化
Relevant
SDGs

Customer Relations
お客さまとの関わり

環境への取り組み
Ideal image for 2025

We aim to improve brand strengths of Furukawa products andachieve top rankings in product categories.

従業員との関わり

ACTION[Comment from the Responsible Committee] Overview of Fiscal 2021

PLAN & CHECK

Fiscal 2021 targets and assessments se the 取引先との関わり
U
results of change point controls toenhance educational activities for preventing
defects from occurring

Achievement★★

Improve 株主・投資家との関わり
DR*1 and SR*2 in the development anddesign stages★★★

 trengthen quality assurance management forS
components produced overseas
地域社会との関わり
Engage in initiatives involving quality assurance
frameworks (respective materials businesses)★★
★★

★★★Target achieved; ★★Target partially achieved; ★Target not achieved

Fiscal 2022 targetsR educe the number/cost of complaints①Revise internal rules, criteria, and standards for
improving design quality②Educational activities to eliminate defects
originating mainly from change points③Promote product quality patrols between placesof businessImprove product safety①Activities to improve product safety(reforming methods of education, etc.)

 trengthen quality assurance systems
S①Revise/verify ISO systems, rules, and standards
for each place of business*1 DR: Abbreviation for Design Review. Third-party reviews of specifications and design specifications, programs, and other outputs from each phase (sales, accounting, purchasing,production management, quality assurance, etc.).
*2 SR: Safety Review. Reviews with emphasis on aspects of safety during the use of newly developed products.

Tatsuki Nazuka

Based on quality assurance, all products andservices are for our customers

Quality Assurance Committee
Chairperson, Director, Senior
Executive Officer, General
Manager, Technology Division

The Quality Assurance Committee implements various efforts to guarantee that every product and service
produced and provided to customers by the Furukawa Company Group is safe and satisfactory. Even forcomponents procured overseas and in manufacturing at overseas plants, and for products for export aswell, we aim to guarantee quality worthy of the pride of Japanese manufacturers.
In fiscal 2021, we made efforts to implement complete prevention educational activities and improve
DR and SR in the development and design stages, and promoted efforts such as improving operational
efficiency by incorporating ICT into manufacturing and inspection operations and visualizing change
points—an ongoing theme from the previous fiscal year—on the production floor, all in an effort to limit
complaints at each place of business.
In fiscal 2022, we will promote educational activities to eliminate defects originating from change
points, implement activities to improve quality through quality patrols between places of business, andrevise regulations for strengthening quality assurance systems at each place of business.

DO

Quality Assurance Management System
The Furukawa Company Group revised its quality assurance
management system in fiscal 2021. In order to establish a systemthat assures customers of reliable product quality in addition to safety,
the Product Safety Committee established within the headquartersof Furukawa Co., Ltd. was changed to the Quality AssuranceCommittee. Additionally, the Quality Assurance Management
Department was newly established within the company’s Technology
Division in order to promote activities for quality assurance andproduct safety and to manage the Group’s quality assurance system.
Under Quality Assurance Basic Policy and Quality Assurance Action
Guidelines, which were enacted concurrently, the entire company will
come together in an effort to provide manufacturing and services
worthy of customers’ trust and satisfaction.

President & Representative Director
CSR Promotion Meeting
Reporting

CSR Promotion
Department (secretariat)

Furukawa Co., Ltd.
Quality Assurance Committee
Quality Assurance
Expert Committee

Quality AssuranceManagement
Department (secretariat)

Core operating companies
Machinery Sectional Meeting

21

The Quality Assurance Committee oversees the Quality Assurance
Expert Advisory Council—a gathering of people responsible for quality
assurance in core operating companies—and organizes sectional
meetings dedicated to machinery and materials to undertake activities
in their respective segments. These organizations under the Quality
Assurance Committee promote compliance with laws and regulations
on manufacturing, quality assurance, and product safety, and the
manufacturing of products that customers can use with a sense ofsafety and security. Additionally, risk assessments and other activities for
improving product safety levels are continuing with the understandingthat quality assurance is an integral part of product safety.
Visit the following site for the Quality Assurance Basic Policy and the Quality
Assurance Action Guidelines
https://www.furukawakk.co.jp/pdf/CSR/e/csr_21.pdf●Machinery Sectional Meeting Activity Report●Quality Assurance Management System

Guidance/
instruction●Quality Assurance Committee

Materials Sectional Meeting

Furukawa Industrial Machinery Systems Co., Ltd.

Furukawa Metals & Resources Co., Ltd.

Furukawa Rock Drill Co., Ltd.

Furukawa Denshi Co., Ltd.

Furukawa Unic Corporation

Furukawa Chemicals Co., Ltd.

The Machinery Sectional Meeting is continuing to promote efforts
to “reduce complaints” and “monitor production change points”
under the concept of “making products that satisfy our customers.”
The sectional meeting is making efforts to share information about
methods of analyzing and reducing complaints and toward thehorizontal spread of the methods themselves between placesof business. To prevent change points on the production floor
from generating defects and complaints, the sectional meeting isestablishing a mechanism for a flow that starts with visualization andproceeds through change point aggregation, prevention planning,
execution of prevention activities, and verification in that order.
Small-group manufacturing improvement activities are being
promoted at each place of business with the aim of translating individual
improvements, however small, into improvement of quality, productivity,
safety, and the environment, in addition to striving to enhanceawareness of quality among officers and employees. Also, the latest
measuring instruments are being used to shorten the time required formeasurement, improve product precision, and expedite development.
Regarding delivery times, quality, and distribution—the risk factors ofprocuring components from overseas—efforts will be made to create
multiple channels for remote auditing and procurement to limit the
impact of pandemic-related delays in auditing and distribution abroad.
Discussions on this topic will continue based on the belief that theimportance will increase further in the future in terms of the ideal state ofproduct safety and quality assurance with automated machinery.

Core operating companies in the machinery business will maintaintheir momentum in taking the next steps for improving manufacturing
capacity and on-site strengths to maintain customers’ trust in the
Furukawa brand.

defective products into circulation, and efforts are made to prevent
such circulation by promoting the automation of inspections and highly
reliable designing through FMEA*4 focused on change points control.
The Materials Sectional Meeting shares this information and engages in
activities aiming to enhance the skills of each company.
As a result of these kinds of efforts, we achieved zero market
complaints in fiscal 2021. Likewise, we aim to achieve zero market
complaints again in fiscal 2022, and will accordingly take steps thatinvolve designing highly reliable products, preventing the release of
defective products, and improving our quality assurance framework
which includes products procured overseas, and work on activities
to further heightening skills of each company.

●Materials Sectional Meeting Activity Report
Based on a customer-oriented approach, the Materials Sectional
Meeting—which comprises core operating companies whose
products are materials that are widely used in electronic devices andother products—is taking steps to improve the quality assurance
system encompassing components procured overseas with the goalof achieving zero market complaints.
For risk assessment at core operating companies in the materials
business, the sectional meeting provides information about risks in SDS*3
and the like in addition to fully understanding the major risks of allowing*3 SDS: Abbreviation for Safety Data Sheet.
*4 FMEA: Abbreviation for Failure Mode and Effects Analysis. A systematic analysis
method that predicts the causes of quality problems and prevents them at the design
and process planning stage.

TOPICS
Responding to complaints
When complaints are made, the Quality Assurance Departments of core operating companies take the lead in immediately checking the facts,
and analyzing and verifying the causes. When problems with quality are deemed to be particularly serious, the departments make reports to thecompetent authorities according to laws and regulations, disclose information to customers through websites and other means, and promptly
report the circumstances to management; accordingly, the Group comes together and takes swift, proper measures under the system in place.

Customers/market
Information from complaints

Core operating companies
Sales departments,
service departments

Competent authority
Affiliated groups
Recall applications, etc.

Publicannouncement

Furukawa Co., Ltd.

Response/address the market

Quality
Assurance
departments

Investigation of causes /consideration of countermeasures

Design and development
departments, manufacturing
departments, etc.

Reporting

Reporting

Designation
as serious
qualityaccident(s)Collaboration

Collaboration

Corporate Planning Department /Public & Investor Relations Section

President &Representative Director

Instruction

Quality AssuranceCommittee
Quality AssuranceManagement Department

22

お客さまとの関わり
Relevant
SDGs

Environmental Efforts
環境への取り組み

従業員との関わり
Ideal image for 2025

(Reduce environmental impacts, protect environment and ensure safety,
Promoteenvironmental and protect biodiversity, publish environmental and safety activity outcomes,
and continue working to ensure there are zero accidents and zerosafety activities
disasters at suspended and abandoned mines)

ACTION

取引先との関わり[Comment from the Responsible Committee] Overview of Fiscal 2021

Environmental Efforts (Basic Approach)

Practicing Environmental Conservation
through Our Overall Business Activities

which are based on Vision for 2025, and has begun discussions
toward achieving carbon neutrality.
In the course of expanding our environmental conservation
activities, we are implementing preventive measures, striving to
improve our resilience in the face of natural disasters, and making
other efforts to enhance and reinforce our capacity to respond to risks.
We are also promoting initiatives to reduce the negative impactof our business activities on ecosystems, as well as activities toconserve and rehabilitate biodiversity, including ongoing greening
activities and cultivating healthy forests.

Based on its the Charter of Corporate Conduct and Basic
株主・投資家との関わり
Environmental
Management Principle, the Furukawa Company
Group works to reduce environmental risks associated with its
business activities and engage in corporate activities that are
mindful of the global environment in order to contribute to therealization of地域社会との関わり
a sustainable society.
With respect to measures against global warming, theGroup is promoting activities based on the Fourth Medium-Term
Reduction Targets for the 10-year period starting in fiscal 2020,

PLAN & CHECK● Key Environmental and Safety Targets and Results (Fiscal 2021)

To help build a sustainable society, the Furukawa Company Group works to improve our production facilities
and make our operations safer and more efficient. We also practice environmental conservation that is
mindful of the impact our business activities as a whole have on the global environment and biodiversity.
In fiscal 2021, we took measures in response to the COVID-19 pandemic, including switching to web
conferencing systems for some of the on-site inspections. Although we postponed or otherwise changed
the timing of the Environmental and Safety Audits and Environment/Safety Promotion Meetings we conduct
each year, we did conduct them as planned while taking measures to prevent the spread of infections.
We also implemented various prevention work to improve the resilience of suspended and abandoned
mines in Japan against natural disasters, which have occurred frequently in recent years, specifically by
preventing natural disasters from shutting down mine pollution prevention facilities and allowing mine run-off
to flow into rivers and the like. We have also begun considering ways to take action at each of the Group’s
production locations on the path toward carbon neutrality.

★★★Target achieved; ★★Target partially achieved; ★Target not achieved

Key fiscal 2021 targets

Fiscal 2021 results

Masayuki Kuno
Environment and Safety Management Committee
Chairperson, Executive Officer, General Manager,
Environment and Safety Management Department

Achievement

Management ofsuspended andabandoned mines

Environmental protection and safety and health activities

Operation and promotion of effective environmental and safety management systems by each Group company●Promoting continuous improvement of operation in accordancewith the EMS standard●Checklists were used to check initiatives for environmental conservation and safety and●Promoting systems for compliance with relevant laws and regulations
health control during Environment and Safety Audits, and guidance was provided on●Promoting the conservation of equipment that impacts on the
points for improvement
environment and safety●The duties of people with environment and safety responsibilities were clarified, and●Promoting the reliable gathering and efficient application ofcapabilities needed to comply with relevant laws and regulations were improved
various kinds of data

Environmental protection and safety
and health activities
Management ofsuspended andabandoned mines

DO

Environmental Management● Environment and Safety Promotion System (FY2022)

Continuous improvement of environmental performance●Reducing greenhouse gas emissions (by introducing “toprunner” appliances and machinery, streamlining production
processes, developing and institutionalizing environmentallyconscious products, etc.)●Monthly events for internal reports on environmental performance were held based on●Reducing the use of water resources (by improving theaggregated results from each site, and feedback was provided to each place of businessefficiency of water consumption, reusing water resources,
based on the details★★★
streamlining production processes, etc.)●In Environment/Safety Promotion Meetings (Environment), discussions about targets were●Reducing total emissions including waste and converting waste
held with key people from each site
into valuables (by streamlining raw material usage in order torestrict the generation of byproducts, recycle materials, etc.)●Reducing chemical substance emissions (improving production
processes, properly managing abatement equipment, etc.)

Promoting biodiversity protection activities●Promoting specific initiatives on measures for reducing
environmental risk to biodiversity●Promoting continuous tree-planting, forest management, andanimal and plant species rehabilitation activities●New Firefly Rehabilitation Project plans were formulated for the Ashio Office●Annual plans for the ongoing management of forests owned by the Company were
formulated, and various tasks were performed★★★

Enhancing preventive measures for eliminating accidents and disasters●Strengthening preventive measures through thoroughrecurrence prevention measures and risk assessment●The number of environmental and facility accidents was lower than the previous fiscal●Intensifying safety activities to eliminate unsafe conditions andyear, but the number of industrial accidents increased
behaviors●The severity rate was 0.01; we met our severity rate target of 0.03 or lower●Reducing facility and environmental accidents by strengthening●On-site inspections and online meetings were held at each place of business thatfacility and equipment inspections and proper work procedures
experienced an accident●Reducing occupational accident rates (Target: Severity rate of
0.03 or lower)

Strengthening workplaces by passing on knowledge and skills
Maintenance at final disposal sites and in shafts●Thorough everyday inspections●Conducting employee training to increase knowledge and skills★

Maintaining and managing mine run-off treatment facilities●Dangerous tasks were identified in order to ensure safety●Conducting employee training to increase knowledge and skills●Various work was performed to improve the resilience of mine run-off treatment facilities at ★★★
the Ashio and Kune Mine Management Offices against torrential rain disasters● Environmental and Safety Activity Targets for Fiscal 2022

23

★★★

Promoting continuous improvement of environmental performance (CO2, water, waste, chemical substances)●Strengthening reduction target control based on the Fourth Medium-Term Reduction Targets ●Analyzing monthly data to promote preventive measures●Reducing volumes of chemical substances handled (1% reduction from the previous fiscal year)

Promoting training/guidance for improving on-site strengths●Promoting training for improving understanding of relevant laws and regulations ●Promoting education for improving knowledge and skills for executing tasks●Promoting analysis and utilization of measurement data

Enhancing preventive measures for eliminating accidents and disasters●Reducing facility and environmental accidents by strengthening facility and equipment inspections and proper work procedures●Intensifying safety activities to eliminate unsafe conditions and behaviors ●Promoting training to help improve sensitivity to danger●Strengthening risk assessment implementation to reduce industrial accident rates (Target: Severity rate of 0.03 or lower)

Promoting biodiversity protection activities●Strengthening efforts to reduce the impact of risks from business activities on ecosystems●Promoting ecosystem conservation activities by continuous tree-planting activities, forest management, etc.

Strengthening workplaces by passing on knowledge and skills
Maintenance at final disposal sites and in shafts

Maintaining and managing mine run-off treatment facilities

President and Representative Director●Environmental & Safety Management Committee
Important matters regarding the Group’s environmental conservationand occupational safety and health control are proposed anddiscussed by the Environmental & Safety Management Committee,
which comprises the leaders of the production sites. The committee
meeting in April 2021 was held online rather than in person as ameasure for preventing the spread of COVID-19. At the meeting,evaluations of environmental and safety activities in fiscal 2021,
environment and safety activity targets for fiscal 2022, and thelike were reported, discussed, and approved. Other matters werealso discussed, including the progress of, and projections for the
Fourth Medium-Term Reduction Targets, and the circumstances
under which accidents
and disasters occurred
and the status of efforts
to eliminate them. The
Environmental & Safety
Management Department
reported on efforts toachieve carbon neutrality,
and then asked relevant
people for cooperation.
Environmental & Safety Management Committee

CSR Promotion Meeting
Guidance/Instruction

Reporting

CSR Promotion
Department(secretariat)

Environmental &Safety Management
Furukawa Co., Ltd.
Department
Environment/Safety promotion meetings(secretariat)(environment meetings, safety meetings)
Environmental & Safety Management CommitteeCore operatingcompanies

Furukawa Industrial Machinery Systems Co., Ltd. Furukawa Metals & Resources Co., Ltd.
Furukawa Rock Drill Co., Ltd.
Furukawa Denshi Co., Ltd.
Furukawa Unic Corporation
Furukawa Chemicals Co., Ltd.

[Environmental & Safety Management Committee]
Committee Chairperson: General Manager, Environmental & Safety Management Department
Members: General managers of each division, core operating companies’ works generalmanagers (or general managers of administration if there is no general manager of works)
Secretariat: Environmental & Safety Management Department
Meeting location: Head Office, Furukawa Co., Ltd.
Meeting frequency: Once a year
[Environment/Safety promotion meetings (environment meetings, safety meetings)]
Attended by: Environmental & Safety Management Department general manager and employees,
employees with environment and safety responsibilities of core operating companies and otherdivisions
Secretariat: Environmental & Safety Management Department
Meeting location: As a rule, held at the Ashio Office of Furukawa Co., Ltd.
Meeting frequency: Once a year (starting in fiscal 2021, environment meetings and safety
meetings are being held separately)

Environmental and Safety Audits
The Furukawa Company Group conducts annual Environmental
and Safety Audits in May and June to promote a transition fromcorrective measures to preventive measures in an effort to improve
environmental conservation, safety, and health activities at each siteof business. Given the state of the spread of COVID-19, the timing of
the audits for fiscal 2021 was changed to October and November.
Regarding environmental aspects, the Environmental and Safety
Audits in fiscal 2021 confirmed the management of progress toward
improving environmental performance at each site, the status of
the response to environmental laws and regulations that impact
operations, and other matters based on the Fourth Medium-Term

Reduction Targets. Regarding safety aspects, the audits confirmed
the status of risk assessment implementation, the status of expost efforts to analyze and prevent the recurrence of the causes ofaccidents and disasters, andthe like, and were conducted
for the purpose of providing
assistance for the efforts ofeach works toward eliminating
accidents and disasters, and tocontribute to the improvement
Osaka Works of Furukawa Chemicals Co., Ltd.
of on-site strengths.
24

お客さまとの関わり

Environmental Efforts
環境への取り組み

揮発油（ガソリン）
揮発油（ガソリン）

従業員との関わり

OI L
OI L

Gasoline

灯油

OI L
OI L

灯油

DO

CO 2

上水道

CO 2

Kerosene

工業用水

排水量

工業用水

排水量

地下水

廃棄物等
総排出量
廃棄物等
総排出量

Kerosene

取引先との関わり

Environment/Safety Promotion Meetings
株主・投資家との関わり
Environment/Safety
Promotion Meetings, which are attended bypersonnel responsible for environment and safety of the Furukawa
Company Group, were previously held once each year to improve
地域社会との関わり
environmental conservation, safety, and health activities at eachsite; to further improve the development of these personnel andactivities at each site, the meetings have been held separately
since fiscal 2020, with Environment Meetings in November and
Safety Meetings in July.

揮発油（ガソリン）
揮発油（ガソリン）●Environment Meetings

灯油

灯油

In July 2020, a Safety Meeting was held at the Ashio Office ofFurukawa Co., Ltd. At the meeting, a test was administered
to confirm safety awareness, the circumstances of industrial
accidents from the five previous years were reported, andguidance was provided on topics such as using the 4M method
to analyze the causes of accidents. Discussions were also held
in an effort to improve sensitivity to danger, and the deliberations
were quite lively.

軽油

Category
揮発油（ガソリン）
揮発油（ガソリン）
揮発油

OI L
OI L
OI L

Gasoline
Gasoline（ガソリン）

Volume used軽油

List of Our Products Giving consideration to Humans
and the Environment Now Featured on Our Website
The Furukawa Company Group is actively undertaking initiatives
to develop and institutionalize environmentally conscious productswith consideration for environmental conservation and carbon
neutrality to contribute to the realization of a sustainable society.
We have created a list of the products giving consideration tohumans and the environment that resulted from these efforts.
We intend to continue our efforts to provide products andservices giving consideration to humans and the environment.
Visit the following site for a list of our products giving consideration tohumans and the environment
https://www.furukawakk.co.jp/csr/environment/consideration.html

CO 2

軽油

上水道

CO 2

軽油

OI L
OI L

地下水

Diesel oil
Diesel oil

OI L
OI L

Kerosene

Ａ重油

工業用水

排水量

工業用水

排水量

Ａ重油

廃棄物等

液化石油
ガス（LPG）
液化石油
ガス（LPG）

OI L
OI L
OI L

灯油

Kerosene
Kerosene

灯油

OI L
OI L
OI L

軽油

Diesel oil
Diesel oil

軽油

Volatileoil(gasoline)

灯油

Total
water
OI L
withdrawal

30 kℓ

CO 2
Ａ重油

上水道

工業用水

205 kℓガス（LPG）
排水量

工業用水

揮発油
（ガソリン）

都市ガス

揮発油（ガソリン）
灯油

揮発油（ガソリン）

廃棄物等
都市ガス
総排出量
廃棄物等
都市ガス

地下水
地下水

Diesel oil
地下水

揮発油（ガソリン）

OI L

揮発油（ガソリン）
灯油
CO 2

上水道

OI L

170 kℓ

CO 2

灯油

電気

軽油

Gasoline

軽油
排水量

工業用水

OI L

CO 2 灯油

Ａ重油

Kerosene108
thousandOI L
m3

Industrial
water
排水量

工業用水

Kerosene

軽油

軽油

 roundG
water

562
thousand
OI L
m3

Ａ重油
廃棄物等
総排出量
液化石油

地下水

OI L

廃棄物等
総排出量

地下水

Diesel oil

Environment/Safety Promotion Meetings (Environment Meetings)

液化石油ガス（LPG）

INPUT

電気
電気

In the second year (fiscal 2021) of the Fourth Medium-Term
Reduction Targets for the 10-year period from fiscal 2020 tofiscal 2029, which are based on Vision for 2025, we achieved the
reduction targets for CO2 emissions, use of water resources, andtotal emissions including waste by promoting the introduction of“top runner” appliances and machinery and the streamlining ofproduction processes at each works, but also due to decreases
in production and the like at some works due to the pandemic.
As we enter the third year of the Fourth Medium-Term
Reduction Targets, we are making efforts to gain an accurate
understanding of each company’s progress toward achieving the
reduction targets, and to actually achieve the targets.

●Energy consumption(thousand GJ)

800
600

458

483

液化石油
ガス（LPG）

都市ガス

都市ガス

電気

511

電気

438

427

排水量

Diesel oil

OI L
OI L

Kerosene
Diesel oil

OI L

CO 2

上水道

工業用水

排水量

地下水

廃棄物等
総排出量

工業用水

排水量

地下水

廃棄物等
総排出量

地下水

廃棄物等
総排出量

0 thousand m3

Diesel oilW astewater
volume474 thousand m3T otalemissions
includingwaste

5,912 tOUTPUT

電気

電気(thousand t-CO2)

40
25

26

26

2017

2018

22

21

2019

2020

2021

477

477

474

2019

2020

2021

20

CO2 emissions decreased 5% year on year
due to the 3% year-on-year decrease in energy
consumption and the CO2 emissions factor.

10
2017

2018

2019

2020

2021

(FY)

623

692

(FY)

●Wastewater volume(thousand m3)

800
600

465

410

Wastewater volume slightly decreased year
on year due to the 1% year-on-year decreasein water consumption.

200(thousand m3)

671

0

400

●Water resources withdrawn

600

OI L

電気

30

Energy consumption decreased 3% year on year due
to reduced production at some works because of thepandemic as well as efforts to reduce energy consumption,
including introducing “top-runner” appliances and machineryand streamlining production processes at each works.

800

工業用水

20,903 t-CO2●CO2 emissions

200
0

Gasoline
Kerosene

都市ガス

400
電気

CO 2

液化石油
ガス
（LPG）
都市ガス

液化石油
ガス（LPG）

廃棄物等Ａ重油
総排出量

地下水

電気
Ａ重油

上水道

C
 O2
emissions

液化石油
ガス（LPG）
都市ガス

Ａ重油

都市ガス

Diesel oil

CO 2

Ａ重油

排水量 軽油

都市ガス

OI L

OI L
OI L

Gasoline

Kerosene

ガス（LPG）

Diesel oil

都市ガス
軽油

上水道

Gasoline

36,414
Electricity OI L
thousand kWh
OI L

電気

灯油

総排出量
廃棄物等
総排出量上水道

Gasoline

電気

314 t

Volume used773
L thousand
City gas OI
m3

都市ガス

Liquefied petroleum
gas (LPG)

排水量
液化石油
ガス
（LPG）
排水量
液化石油

工業用水

Kerosene

ガス
（LPG）
液化石油
ガス（LPG）
工業用水

OI L

Category

170 kℓCO 2

上水道

Clean
water

上水道

液化石油
ガス
（LPG）
液化石油

Kerosene

Fuel oil A

CO 2
Ａ重油

上水道

OUTPUT

総排出量
廃棄物等
Volume
used
総排出量

地下水

電気

Ａ重油

Gasoline

地下水

OI L Category

Diesel oil

Kerosene

軽油

揮発油（ガソリン）INPUT
OI LDiesel oil

Ａ重油

The Fourth Medium-Term Reduction
Targets and Results of the Second Year

TOPICS

上水道

Gasoline

Gasoline

灯油

Total energy
consumption

都市ガス

Environment/Safety Promotion Meetings (Safety Meetings)

Gasoline

Kerosene

Diesel oil●Safety Meetings

OI L
OI L

Material Flow of the Furukawa Company Group (Fiscal 2021)

In November 2020, an Environment Meeting was held at Sakura
Works of Furukawa Unic Corporation. At the meeting, theprogress of achieving the Fourth Medium-Term Reduction Targets
at each site was checked, a test was administered to check legal
requirements for maintaining various facilities, and measures tocorrect and prevent past environmental accidents in the Group
were explained in an effort to share knowledge. A report wasalso given on the latest circumstances with regard to emergency
preparation and response at each company and site.

Ａ重油

25

上水道

Gasoline

680

0

671

2017

2018

(FY)

●Total emissions including waste

400
200

(t)

Valuables

0

8,000

6,884

2017

2018

2019

2020

2021

(FY)

Water consumption decreased 1% year on year due toinstallation of water-saving equipment and measuresagainst leakage undertaken at some sites of business aswell as efforts to reduce water consumption, including
improving consumption efficiency, reusing water resources,
and streamlining production processes.

Waste
7,160

7,039

3,803

3,836

5,912

6,000

5,347

4,000

2,858

2,000

2,489

2,928

3,357

3,203

2,456

2017

2018

2019

2020

2021

0

3,956

3,456

(FY)

Total emissions including waste decreased 16%
year thanks to efforts to restrict the generationof waste and recycle waste materials, but also
because of developments such as reduced
production due to the pandemic. Note thatvaluables account for 42% of total emissions
including waste.

TOPICS
Forests owned by the company
Furukawa Co., Ltd. owns roughly 2,200 ha of forest around Japan. The company makes
efforts to ensure the healthy growth of forests by working with local forest cooperatives tosystematically remove and thin trees, clear away undergrowth, trim branches, and the like.
The Kune Forest of the Tenryu-ku of Hamamatsu City in Shizuoka Prefecture has beencertified by the Forest Stewardship Council (FSC) of Japan. The Kune Forest and otherforests owned by the company absorb roughly 8,000 t-CO2 per year, which is equivalent
to roughly 38% of the Furukawa Company Group’s CO2 emissions in fiscal 2021.
The company is working with local forest cooperatives to construct new access roadsin the forests for healthy forest control and to improve work efficiency and facilitate thetransportation of thinned wood.

Kune Forest (Tenryu-ku, Hamamatsu City,
Shizuoka Prefecture)26

お客さまとの関わり

Environmental Efforts
環境への取り組み

従業員との関わりDO

取引先との関わりManagement of Chemical Substances

Response to Climate-Related Risks

株主・投資家との関わり

In fiscal 2021, we handled 15 chemical substances that are required to be reported under the PRTR* system, the same number as in theprevious fiscal year. We were able to decrease atmospheric emissions of xylene, toluene, ethylbenzene, 1,2,4-trimethylbenzene, and othersubstances
due to reduced production in each segment during COVID-19 pandemic as well as efforts to reduce chemical substance
地域社会との関わり
emissions, including improving production processes and properly managing of exclusion devices.
●Emission and Transfer of Substances Required to Be Reported under the PRTR System
Numbers in blue: Decreased from the previous fiscal year Numbers in red: Increased from the previous fiscal year (unit: kg/year; or mg-TEQ/year for dioxin only)
Substance
numberEmissionsChemical substance

53
75
80
87
243
272
296
297
300
308
332
374
412
438
453

Ethylbenzene
Cadmium and its compounds
XyleneChromium and chromium (III) compounds
Dioxins
Copper salts (water-soluble, except complex salts)
1,2,4-trimethylbenzene
1,3,5-trimethylbenzene
TolueneNickelArsenic and its inorganic compounds
Hydrogen fluoride and its water-soluble salts
Manganese and its compounds
Methylnaphthalene
Molybdenum and its compounds

Atmosphere
FY202028,534040,491
2
2.7
0
5,005
1,302
38,317
0
5
0
5
13
0

Public waters

Volume transferred
Landfill at works

SoilTransfer to sewer

Outside of works

FY2021
FY2020
FY2021
FY2020
FY2021
FY2020
FY2021
FY2020
FY2021
FY2020
FY2021
24,064
0
0
0
0
0
0
0
0
1,894
1,713
0
0
0
0
0
0
0
0
0
7
2,798
32,486
0
0
0
0
0
0
0
0
3,672
3,766
1
0
0
0
0
0
0
0
0
34
17
4.9
0
0
0
0
0
0
0
0
0.21
0.06
0
0
0
0
0
0
0
6
7
0
0
3,759
0
0
0
0
0
0
0
0
485
477
1,012
0
0
0
0
0
0
0
0
168
162
36,255
0
0
0
0
0
0
0
0
1,445
1,172
0
0
0
0
0
0
0
0
0
0
0
8
0
0
0
0
0
0
0
0
1,769
2,452
0
7
3
0
0
0
0
0
0
1,477
1,277
5
0
0
0
0
0
0
0
0
30
26
11
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

* PRTR: Pollutant Release and Transfer Register

Environmental Accounting●Environmental Conservation Costs
The Furukawa Company Group endeavors to conserve the environment and improve
environmental efficiency by tracking costs required for environmental conservation inreference to the Ministry of the Environment’s Environmental Accounting Guidelines.
Total investments for fiscal 2021 reached ¥545 million. The Group invested in work
to update the wastewater pipes of tailings dams at suspended and abandoned mines,
work on facilities in shafts, work on soundproofing facilities at works, and other pollution
prevention work. Our investments reinforced preventative measures; as a result, pollution
prevention costs account for roughly 70% of the total.
Costs totaled ¥1,068 million, the breakdown of which is mainly the costs for promoting
environmental conservation activities such as the thorough maintenance and managementof pollution control equipment and conservation of forests.
●Environmental Conservation Costs (Categories Corresponding to Business Activities)

Breakdown

Category(1) Business area costs
Pollution prevention cost

Cost for preventing air pollution and water pollution

Global environment conservation cost Cost for saving energy and maintenance and management of forests owned by the Company
Resource circulation cost

(Millions of yen)

Investments

Content of the principal activities

Cost for recycling, waste processing, and effective use of water

Costs

530

850

402

570

121

68

7

212

(2) Upstream and downstream costs Cost for recycling, recovering and re-commercialization of products from the market

08(3) Administration cost

Cost for operating ISO 14001 standards, environmental education, cleanup and greening of business sites

063(4) R&D cost

R&D cost to develop products that contribute to environmental conservation

15

145

(5) Social activity costs

Cost associated with various social activities including cleanup of neighborhood areas, planting of greenery, etc.

02(6) Environmental remediation cost Cost allocated for recovery from environmental degradation due to business activities

0

0

545

1,068

Total

●Environmental Conservation Benefit
Environmental conservation benefit category

Environmental performance indicator (unit)

FY2020

Environmental conservation benefit
related to resources input intobusiness activities

Total energy input volume (thousand GJ)

438

Input volume of water (thousand m3)

Environmental conservation benefit
Volume of greenhouse gas emissions
related to waste or environmental impact
Total emissions including waste
originating from business activities

27

680

FY2021

Difference from the previous fiscal year

427 Reduced by 11000
671●Economic Impacts ofEnvironmental Conservation
The reduction of electric power purchasing
costs, due to the operation of turbine generatorsof the Osaka Works of Furukawa Chemicals
Co., Ltd. was ¥43 million in fiscal 2021.
The economic impact derived fromresource circulation (gains on sale ofvaluables, etc.) was ¥128 million.

21,93020,903 Reduced by 1,027

(t)

7,039

5,912 Reduced by 1,127●Cancelation of the Ashio Cherry Tree-Planting
Drive and Furukawa-no-mori Tree-Planting Drive
As a measure to prevent the spread of the novel coronavirus, wecanceled the Group’s distinct greening activities in 2021 as we didin 2020. Specifically, we canceled the Ashio Cherry Tree-Planting
Drive, through which we aim to plant 1,000 cherry saplings oncompany property in the Ashio area, and the Furukawa-no-moriTree-Planting Drive on land owned by the company in the Matsuki
area of Ashio-machi, Nikko City, Tochigi Prefecture (Sponsor:
The Tochigi Furukawa Association, an organization of Furukawa
Group companies in Tochigi Prefecture).
Although we have canceled both drives for two consecutive
years, we intend to continue the activities in the future.

●Firefly Rehabilitation Project at the Site of the Former
Kune Mine and the Former Ashio Copper Mine

(Millions of yen)Content of the benefit
AmountResource circulation (gains Gains on sale of stainless128
on sale of valuables, etc.) steel, iron, etc.
Energy-saving
effectReduction of electric powerpurchasing costs due to the operationof steam turbine generators
Total

43
171

●Breakdown of Environmental Conservation Cost Invested
Resource circulation
cost
1.3%

R&D cost
2.8%

Total investment
in environmental
conservationin fiscal 2021

¥545 million

Global environmental
conservation cost
22.2%

Pollution prevention
cost
73.7%

The Kabura River,which runs next to
the Yoshii Works of
Furukawa Rock Drill
Co., Ltd. (left)

The entrance to thesolar power plantat the Ashio Office

Promotion of Biodiversity Protection Activities●Economic Impacts of Environmental
Conservation (Material Impacts)

Reduced by 9000

(t-CO2)The Environmental & Safety Management Department of Furukawa Co., Ltd.
evaluates envisioned climate-related risks at the Group’s works and in the areas
around suspended and abandoned mines after investigating sites and meetingwith key people to gain a full understanding of the state of management.
The department has used damage from past disasters, hazard maps, and otherresources to envision the state of damage and formulate measures for responding toheavy rains that could cause a river to overflow near the Yoshii Works of Furukawa
Rock Drill Co., Ltd., and to torrential rains and heavy snow that could cut off
infrastructure at the Ashio Office, which manages suspended and abandoned mines.
In an effort to minimize the impact of natural disasters on operations andsurrounding environments, the department has strengthened the emergency
contact network, clarified roles and responsibilities to enable the prompt andappropriate implementation of countermeasures, and establish a system thatenables swift responses to risks.

A firefly pond under construction on company-owned land in Ashio-machi, Nikko City

As living creatures that reflect the state of the environment,
fireflies are said to be symbols of healthy water environments.
With the aim of rehabilitating the environment to enable fireflies
to live sustainably, and to pass that environment on to the next
generation, our Environmental & Safety Management Department
has continued rehabilitation efforts at the site of the former Kune
Mine in the Tenryu-ku of Hamamatsu City in Shizuoka Prefecture,
where it is said that genji-botaru fireflies (Luciola cruciata) dancedin the past. Thanks to the department’s efforts, it is now possible
to see the fireflies in flight from late June to early July every year.
We also launched firefly rehabilitation activities at the site of the

Ashio Copper Mine in Ashio-machi, Nikko City, Tochigi Prefecture
in fiscal 2022.
In the course of developing the rehabilitation area, we incorporated
the concept of biotopes (habitats) to simulate the riparian environment
the fireflies prefer, using gabions to create channel revetments andplanting trees that naturally grow near water—Japanese alders andwillows—along the banks to preserve darkness and block light fromentering the space.
We intend to continue rehabilitation activities for plant life andcreatures in pursuit of biodiversity.

●Safety Control Measures at Suspended andAbandoned MinesThe Group’s basic policy
toward managing suspended
and abandoned mines is
to continue safety-oriented
operations; accordingly, weformulated medium- andlong-term plans for mine runoff treatment and use themto systematically implement
prevention work.
A new fuel storeroom at the Ashio Mine
Extremely intense, localized
downpours and other natural
disasters
haveoccurredfrequently in recent years, andexternal factors cause power
outages, block roads, andcreate other impediments tooperations. In response, wehave made efforts to improve
resilience—the ability to bounceback from disasters—to keep
New sludge tanks at the Kune Mine
mine run-off treatment facilities
in service even during disasters.
At the Ashio Mine in Nikko City, Tochigi Prefecture, we improved
the storerooms for emergency generator fuel to increase fuelstorage capacity to three days’ worth.
Additionally, at the Kune Mine in Hamamatsu City, Shizuoka
Prefecture, we added three sludge tanks and made efforts toimprove emergency generator capacity.

28

環境への取り組み
Relevant
SDGs

Employee Relations
従業員との関わり取引先との関わり
Ideal image for 2025

Our efforts to promote diversification of working styles in a manner that makes use of diverse
human resources will culminate in rewarding workplace environments where it is possible tocreate new forms of value by maximizing the abilities of each and every employee.

株主・投資家との関わり

PLAN & CHECK

Fiscal 2021 targets and assessments
Cultivate地域社会との関わり
human resources● Redouble recruiting efforts● Radically revise education system

★★★
★★★

Promote healthy and productivity management
Reduce annual total working hours●
Improve the percentage of scheduled medical
examinations rece
● Reduce opportunities to smoke

★★★
★★★
★★

●

Fiscal 2022 targets

AchievementC ultivate human resources● Satisfy the necessary personnel● Redouble efforts to recruit new graduates● Radically revise education system
Promote healthy and productivity management● Reduce annual total working hours● Promote health management and reduce health risks
Promote diversity● Increase the percentage of women in management● Increase the employment rate of people with disabilities● Promote active participation by elderly people
Improve work environments● Coordinate and develop productive work environments● Promote various work styles

Promote diversity
Redouble efforts to appoint women to planning★★★
group positions (career-track positions)● Implement human rights due diligence★
Improve work environments● Coordinate and develop productive work environments★★★
●

ACTION[Comment from a Responsible Department] Overview of Fiscal 2021

We will create workplace environments that
employees find rewarding complete with fair
performance evaluations and incentives.

Atsushi Takano
Senior Executive Officer, General
Manager, Human Resources &General Affairs Department

One of our policies geared to achieving our Vision for 2025 is to enhance our human resource foundations
with a focus on cultivating human resources, promoting health and productivity management, promoting
diversity, and improving work environment. In order for the Furukawa Company Group to remain
indispensable to society well into the future, our employees must remain one step ahead with respect toachieving swift transformation and growth, in alignment with the changing times. As such, we will help our
employees grow by flexibly adopting new employment options geared to embracing diverse personalities,
values and living arrangements, and by creating work environments that help give rise to greater creativity.

★★★Target achieved; ★★Target partially achieved; ★Target not achieved

DO

Realizing Rewarding Environments
The Furukawa Company Group is undertaking various reforms
to realize healthy, rewarding environments for diverse humanresources and improve labor productivity and creativity byfacilitating the growth of each and every employee.

●Three Issues and Considerations for Realizing
Rewarding Environments
Developing
human
resources
and usingthem properly
Work-stylereforms toincreaseproductivity
Establishinghealthy
workplaces

Developing diverse human resources in response tofactors such as their length of service, position, job
description, and abilities; putting the most capable
employees in the right positions regardless of what
track they are on; establishing challenging individual
targets; and proper evaluation
Improving working environments such as Automate
and computerize operations, shorten meetings,
effectively manage meetings; aptly applying various
working conditions (flextime systems, teleworking,adopt discretionary work systems; and reform ofmindsets toward improving operational efficiency
Reducing annual total working hours, improving thepercentage of paid annual leave taken, improving
the percentage of scheduled medical examinations
received, actively implementing health promotion
activities●Creating a Comfortable Work Environment
We have been promoting initiatives that help employees maintaintheir health and achieve positive work–life balance by enablingthem to reduce their overtime and take a greater proportion of
their paid annual leave.
Targets
Monthly extra
working hours

29

15.5 hours

Percentage of paid
annual leave taken

60%

Annual total actual
working hours

Less than
2,000 hours

Rate of medical
examinations
received

100%●Initiatives in Fiscal 2021

· Established days on which employees are encouraged to takepaid annual leave, encouraged employees to take paid leave ifthey had taken fewer than five days
· Introduced teleworking and expanded application of the flextime
system· Considered creating teleworking environments for salespeople· Reduced meetings and recommended online meetings

Promoting Diversity●Empowering the Female Workforce
We have been focusing its efforts on actively recruiting andemploying female talent. To such ends, based on our Action Plan
for Promoting Support for Female Employees, we have been
expanding systems geared to empowering our female employees.
●Action Plan for Promoting Support for Female Employees(April 1, 2021 to March 31, 2026)
TargetNo. 1

Ensure that women account for at least 20% of all new
graduate recruits

15.2 hours
61.6%*Same as above

1,952 hours*Same as above

100%*All employees

We hire people with disabilities at various workplaces and forvarious types of work, thereby promoting their independence andparticipation in society.

●Hiring Foreign Nationals
Given its active pursuit of overseas expansion, the Furukawa
Company Group does not base its recruiting decisions on
nationality. Moreover, we strive to deepen partnerships thattranscend nationality as we promote a spirit of mutual respect forindividual differences.

●Extending the Mandatory Retirement Age
As of April 1, 2020, the mandatory retirement age at Furukawa Co.,
Ltd. was increased from 60 to 65, and human resources systems,
wage structures, and severance pay systems were radically revised.
These changes create environments that help employees stay
motivated, and boost the development of middle-aged and young
employees and the passing down of skills by elderly employees.
Visit the following site for more information about employee data

and refrain from using discriminatory language, and accordingly
has all of its new employees take part in human rights training.
Additionally, employees who take part in our employment
hierarchy-specific training undergo in-house training pertaining
to workplace harassment and other efforts to create pleasantwork environments and learn from case studies of specificdevelopments that have given rise to human rights violations.

Cultivating Human Resources●Basic ApproachPremised on its fundamental policy of “what supports limitlessdevelopment of a company is people,” the Furukawa Company
Group employs talented individuals who will actively take on
all challenges, while striving to recognize the diverse values ofindividuals and accordingly creating a rewarding corporate culture
absent of human rights violations and discrimination, whereindividuals are evaluated fairly.

●Development of Human Resources

TargetNo. 2

Appoint at least 10 female managers

https://www.furukawakk.co.jp/pdf/CSR/e/csr_18.pdf

TargetNo. 3

The rate of resignation for personal reasons within five years of
joining the company among women in planning group positions
10% or below

Respect for Human Rights

We seek to optimize the Group’s business framework andmaximize its corporate value by developing professional talent andcreating work environments that enable employees to exercise
their abilities to the fullest.

TargetNo. 4

Encourage employees to take paid annual leave at an averagerate of 12 days per person per year

●Harassment and Discrimination Prohibited●Employment Hierarchy-specific Training

Fiscal 2021 results*Non-managerial employees●Hiring People with Disabilities●Support for Employees Raising Children
We have expanded our support systems for employees who areraising children in part by making a greater range of employees
eligible to use our various programs addressing childcare needs,
and by providing paid leave to cover some time taken off to carefor infants and toddlers. We also encourage male employees totake parental leave so that they might also have opportunities toparticipate in child rearing.

The Furukawa Company Group prohibits all forms of harassment
and discrimination, premised on our commitment to recognizing
the diverse values of individuals and accordingly creating a
rewarding corporate culture absent of human rights violations anddiscrimination, where individuals are evaluated fairly. Moreover,
we resolutely take action against harassment and discrimination
based on our internal rules.

●Training on Human Rights
The Furukawa Company Group has established a code of
behavior calling for its employees to respect basic human rights

Our employment hierarchy-specific training helps employees
develop the ability to address societal changes while acquiring
basic knowledge necessary for their respective positions. The
extensive training program is organized by level of the employmenthierarchy, encompassing newly hired, second year, third year, fifth
year, eighth year, and tenth year employees, newly appointed
managers, and section managers. The training program for newly
hired employees incorporates training pertaining to the Ashio
Copper Mine’s history, antipollution measures, present status ofsafety management, and afforestation initiatives.
30環境への取り組み

Employee Relations
従業員との関わり取引先との関わり

株主・投資家との関わり●Training Tailored to Areas of Expertise and Occupations●Target Achievement: 100% Scheduled Medical Examination Rate

We implement training tailored to employees’ areas of expertise
地域社会との関わり
and professional
qualifications, thereby enabling them togain extensive knowledge and acquire specialized skills intheir respective fields. Meanwhile, we actively encourage our
employees to participate in external seminars on specialized
subjects, and to gain public qualifications. We also endeavor todevelop professional talent equipped with extensive knowledge ofcutting-edge technologies and social trends by supporting theirinvolvement in educational organizations and academic societies
outside of the workplace.

We proactively urge all employees to undergo scheduled medical
examinations, and each and every one of them did in fiscal 2021
(Examination rate: 100%).

●Personnel Evaluation System
On July 1, 2019, we adopted a role grade system whereby an
employee is assigned a grade based on the importance of therole he or she is expected to fulfill. To such an end, we havediscontinued our previous system of assigning grades based on
professional qualifications. The new role grade system is the basisof our personnel evaluation system, which we use to evaluate
employees’ job performance, achievement of targets, motivation,and proficiency to guide, cultivate, and develop their potential aswell as ensuring their appropriate job placement, all in an effort toestablish environments in which motivated employees can flourish
with a sense of security.

●Communication to Facilitate Training of Subordinates
Interviews are conducted between immediate supervisors andtheir subordinates on a twice yearly basis, in addition to the daily
communication that takes place between managers and theiremployees. The interviews enable managers to furnish feedback
to employees regarding their work, achievements, points of selfreflection, and findings of performance evaluations. Upon having
reviewed specifics of employee self-assessments, managers
then also furnish advice to employees, verify targets that havebeen established, and share details in that regard. Meanwhile,
supervisors also provide their assessments with respect to the selfanalysis. The process of undergoing straightforward performanceassessments by their supervisors enables employees to scrutinize
themselves on a regular basis, thereby helps fuel their motivation to
pursue further personal development.

Employee Health Management●Promoting Healthy Management, and theGroup’s Health Declaration
The Furukawa Company Group views the management of
employee health in terms of business management, and isdevoting energy to healthy management for the purpose of
improving performance by reinvigorating the organization throughefforts such as improving vitality and productivity. On January
1, 2021, the Group issued a Health Declaration, in which we
published even more proactive measures to maintain and improve
the health of our employees.

●System and Measures
As specific efforts to promote healthy management, we aremanaging employee health through medical examinations andother efforts, and implementing various measures to promote
employee health.
31●Preventing Second-Hand Smoke

We safeguard our employees from the effects of second-handsmoke by setting up separate smoking areas as stipulated underJapan’s Health Promotion Act. We are also considering banningsmoking during working hours in order to prevent third-handsmoke and inspire smokers to quit.
●Collaborative Health and Data Health

Furukawa Co., Ltd. and the Furukawa Health Insurance Society are
working together to plan and consider effective measures based on
analysis of medical examination data (status of documented healthconditions, etc.). The results of the analysis are also discussed withlabor unions, and considerations are underway for joint planningand implementation of various measures.
●Mental Healthcare

We will engage in preventative measures with respect to employee
mental health. This will involve setting specific targets geared toensuring that the company is a safe and pleasant place to work,
while striving to maintain positive mental health based on our
Mental Health Promotion Plan. Meanwhile, we will strive to help
employees who are struggling with mental health issues return towork. This will involve coordinated efforts enlisting occupational
physicians, personnel and labor affairs representatives, andsupervisors, and will furthermore entail our working in conjunction
with specialized institutions and medical specialists from outside
the Group.

TOPICS

Occupational Safety and Health●Initiatives to Prevent Work-related Accidents
To prevent work-related accidents, the Furukawa Company Groupregularly holds Safety and Health Committee meetings and carries
out safety patrols at its respective works and business sites. We also
implement systematic training and training tailored to our employees.
When it comes to education, personnel who are in charge of safety
and health verify the content of training and offer guidance to ensurethat training upon hiring and when duties change, special training,
factory manager training, and other types of training are provided
systematically. We are also enhancing our guidance of personnel
who are in charge of safety and health and other employees bysystematically implementing risk assessment and regularly revising
work procedures and content in an effort to reduce potential risks inthe workplace.
In fiscal 2021, the severity significantly improved, although thefrequency of occupational accidents remained almost the samelevel. We are committed to intensifying safety activities toward theelimination of unsafe conditions and behaviors toward our goal ofzero accidents and disasters.
●Occupational Safety Record of the Furukawa Company Group:
Frequency and Severity of Accidents(Frequency)

0.09

Frequency

1.8

0.09

1.6

0.08

1.4

Furukawa Co., Ltd. was recognized as a 2021 CertifiedHealth & Productivity Management Outstanding
Organization in the Large Enterprise Category for
its efforts with respect to strategically carrying out
initiatives with regard to its employees’ health froma management perspective, based on findings of
the Certified Health & Productivity Management
Outstanding Organizations Recognition program
implemented by
Japan’s Ministryof
Economy,TradeandIndustry (METI).

0.07

0.06

1.2

0.06

0.05

1.0

0.05

0.04

0.8

0.04

0.86

0.6
0.4

0

0.21

0.22

0.43
2017

Safety guidance during an on-site inspection(Osaka Works of Furukawa Chemicals Co., Ltd.)●Safety Patrols
Each of the Group’s works and sites has intensified workplacesafety patrols in an effort to eliminate accidents and disasters.
In addition to patrols conducted by the leaders and people
responsible for safety management at each place of business,members of the Safety and Health Committee conduct safety
patrols, and other patrols are conducted to check for the
existence—or even the risk—of unsafe behavior or conditions of
the workplace.
If unsafe behavior or conditions are discovered, photographs
are taken, the behavior or conditions are corrected and guidanceis provided immediately, and Safety and Health Committee
meetings and other opportunities are taken to spread theinformation among everyone at the place of business.

0.03

0.65

0.2

Recognized as a 2021 CertifiedHealth & Productivity Management
Outstanding Organization in the Large
Enterprise Category (White 500)

(Severity)

Severity

management systems at their works are free of problems, all in aneffort to prevent recurrence.

2018

0.01

0.02
0.01

2019

2020

2021 (FY)0●Number of Incidents Requiring Leave of Absence in the
Furukawa Company Group
Number ofincidents requiring
leave of absence

FY2017FY2018FY2019FY2020

FY2021

3

4

2

1

1

Notes: 1. Accident frequency refers to the rate of occupational accidents with casualties per one
million total working hours.
2. Accident severity refers to the number of working days lost per 1,000 total work hours.
3. Frequency and severity are calculated on the basis of incidents requiring leaves ofabsence of at least four days.

●Occupational Safety and Health Activities
When accidents or disasters occur at any of the Group’s works
or sites, the Environmental & Safety Management Department
visits each location and works with the responsible people there
to provide direct safety guidance with the aim of preventing
recurrence.
On these visits, the department also checks with cooperating
affiliates at the site to ensure that their training is sufficient and the

Safety patrol (Sakura Works of Furukawa Unic Corporation)●Instruction on Safety at Overseas Business Locations
At our overseas business locations, we conduct legally mandated
annual inspections of facilities as well as investigations of the statusof safety training, emergency contact networks, acquisition of official
certifications, implementation of Safety and Health Committee
meetings and safety patrols, and more. We also provide guidance
and advice with the aim of achieving safe, comfortable work
environments and improving the level of management in light of local
laws as well as factors such as climate.

32

従業員との関わり
Relevant
SDGs

Supplier Relations
取引先との関わり

株主・投資家との関わり
Ideal image for 2025

Pursue QCD based on CSR-oriented procurement aimed atsustainable manufacture and sales of products trusted by customers

ACTION[Comment from the Responsible Department] Overview of Fiscal 2021

地域社会との関わり

PLAN & CHECK

Furthering Partnerships with Suppliers andPromoting CSR Activities in the Supply Chain

Fiscal 2021 targets and assessments

Achievement

Fiscal 2022 targets

 stablish a PDCA*1 cycle for the process fromE
CSR surveys to follow-up for major suppliers★★★

L aunch the second CSR survey for major suppliers

 trengthen management (QCD*2 + CSR) of majorS
suppliers★★

 trengthen management (QCD + CSR) of majorS
suppliers

Foster partnerships with suppliers★★

 ontinue Groupwide CSR-oriented procurement
C
activities★

Naoki Ikeda

General Manager, Purchasing
Department

In fiscal 2021, we evaluated the initial supplier CSR surveys administered from fiscal 2017 to fiscal 2020
in total, and made improvements. In the course of evaluating the surveys, we held follow-up discussions
with the suppliers who cooperated in taking the survey, and had them point out questions or multiplechoice responses with wording that was difficult to understand. Accordingly, we improved the wording toelicit proper interpretations and assessments. In fiscal 2022, we plan to start administering the improved
second supplier CSR survey to core operating companies.
We intend to continue following up and otherwise staying in close communication with our suppliers
to further our partnerships and encourage a better understanding of the Group’s CSR procurement.
We are also committed to making contributions to society throughout the entire supply chain through
CSR activities.

Foster partnerships with suppliers
 ontinue Groupwide CSR-oriented procurement
C
activities★★★Target achieved; ★★Target partially achieved; ★Target not achieved*1 PDCA: Abbreviation for plan (P), do (D), check (C), and action (A)*2 QCD: Abbreviation for quality (Q), cost (C), and delivery (D)DO

Basic Approach
The Furukawa Company Group aims to build and maintainmutually beneficial and reciprocal trust-based relationships byexchanging information with suppliers and otherwise emphasizing
communication. Here, we adhere to the principles of fairness andimpartiality, comprehensive economic rationality, and the spirit ofcompliance with laws and confidentiality as set out in the Furukawa
Company Group Basic Procurement Policies. At the same time, we
encourage procurement activities that take CSR into consideration
based on partnerships with our suppliers.
In addition, we are making efforts to procure copper ore frommines outside Japan in ways that consider the environmental
impacts, labor problems, and other issues.

Promoting CSR Activities in the Supply
Chain
The Group’s Procurement Division began conducting surveys andexplaining the aims of the Group’s CSR procurement to both newand existing suppliers in 2016, and administered the first supplier
CSR survey in fiscal 2020 based on the belief that cooperative
relationships are essential not only within the Group, but also with
suppliers and throughout the entire supply chain.
We reflected on points for improvement in the first survey,
and made improvements to the wording to elicit a more accurate
understanding of the content and enable proper evaluations. We
will start administering the improved second supplier CSR survey
in fiscal 2022.
We are also moving through the PDCA cycle for the processfrom the surveys to follow-up in an effort to promote, maintain,
and improve CSR activities, which include the supply chain.

Summary of Initial Supplier CSR Surveys
Administered to Major Suppliers ofGroup Operating Companies
The supplier CSR survey included questions about suppliers’
monitoring of both environmental aspects and social problems,
33

and we received responses to the questions from each of the 154
major suppliers to which the survey was administered.
We administered additional surveys and conducted follow-up
monitoring on-site at the roughly 20 suppliers identified by the survey
as having low awareness of CSR, and discovered that the evaluations
were not accurate because the suppliers interpreted some of thequestions incorrectly or graded themselves too harshly. In response,
we introduced and explained our efforts to help suppliers gain aproper understanding and evaluate themselves more accurately, andconfirmed that there are no problems with those suppliers.

Training personnel responsible for
procurement●Questions on the Supplier CSR Survey(Human Rights, Environment, etc.)

Strengthening Relations with Major
Suppliers: Fostering Partnerships

cooperating affiliates in Japan, we gained their understanding of the

The Group considers suppliers to be important partners in aiming

Materials Strategy Conferences[Survey questions about respecting human rights andpreventing human rights violations](1) Prohibition of child labor, forced labor, unfairly low wages, etc.
(2) Creating work environments free of discrimination andharassment of employees(3) Compliance with labor laws and regulations, improving
work environments[Survey questions about environmental conservation](1) Compliance with international standards, laws, regulations,agreements, etc. related to environmental conservation(2) Energy-saving considerations, using resources effectively,
reducing waste(3) Proper control of chemical substances in products
and chemical substances discharged into the external
environment during manufacturing processes● Report of Supplier CSR Survey

Number of suppliers towhich the survey wasadministered
Number of suppliersinterviewed (Plan: 8(only those for which itis necessary))(

FY2017–
FY2020FY2109154 major
100%
suppliersout of roughly response rate
1,000

)

3 companies(no problems)

FY2021-The Purchasing Department of Furukawa Co., Ltd. is constantly
striving to strengthen the procurement system by holding seminars
for department members.
Themes of training include the environment, quality, humanrights, and more, and the information is shared on a regular basis.

for mutual development.
Thus, in order to strengthen these partnerships, we intend tocontinue to use CSR initiatives to deepen mutual understanding andfurther foster trust-based relationships in fiscal 2022 as well.

Providing Technical Guidance toSuppliers(Furukawa Industrial Machinery Systems Co., Ltd., Furukawa
Rock Drill Co., Ltd., Furukawa Unic Corporation) to offer guidance,
recommendations, and other support to suppliers as necessary.
In fiscal 2021, the methods by which we provided technicalguidance to suppliers were limited by the spread of the novel
coronavirus. In particular, with our overseas affiliates, we held
online meetings featuring videos to check and provide guidanceon fabrication processes, material management, quality inspection
systems, environmental and safety measures, and more. For
necessity of visits, and then performed the checks and provided
guidance in small groups over short periods of time.

Each year, the company’s Purchasing Department holds two Materials
Strategy Conferences attended by the managers of Purchasing
Department at core operating companies in the Machinery segment.
At these conferences, in an effort to promote procurement
activities based on the Furukawa Company Group Basic Procurement
Policies, participants confirm each operating company’s progress onannual targets and exchange opinions toward issue resolution.

In order to continue to maintain trust in the Group’s products, we

In fiscal 2021, participants examined in detail and exchanged

must maintain trust not only in the company itself, but also in theopinions on CSR procurement in the Materials segment and strengthened

level of procured goods. Therefore, it is vital to survey, instruct, andsupplier management geared toward fostering partnerships, coremanage suppliers—our partners—as to the quality of their products

elements of Vision for 2025 for the Procurement segment.

in addition to humanrights,More focused activities are carried out as opportunities toenvironmental

examine initiatives consistent with the policies of the Materials

issues,safety,andStrategy Conferences in more detail; these activities include

otheraspects.

Ourscheduled monthly meetings at each operating company andPurchasing Department

meetings held for individual projects as needed.

is cooperating with core
None*

operating companies in
the Machinery segment
Offering technical guidance to an affiliate in Japan*Delayed due to the pandemic34

株主・投資家との関わり

取引先との関わり

Community Relations
地域社会との関わり

Hosting Field Trip for Ashiko Elementary School
Ashio Rock Drill Co., Ltd. regularly offers social studies field trip
for the children of Ashio Elementary School, which is located in
the area. In Fiscal 2021, Ashio Rock Drill invited seven third-grade
children and their teacher.
The visitors learned about the company’s manufacturing process,the methods used to export products to countries around the world,
the operating production floor, and more, and then received a tour ofthe production line for compact pneumatic and hydraulic breakers.
The visitors also saw first-hand just how powerfully a rock drill bores
through rock. The children expressed their surprise and delight at
the display of power. Ashio Elementary School Principal Matsuura
said, “I think it is important to use social studies field trips to teachchildren about their hometowns with the aim of helping them learn

Relevant
SDGs

Shareholder and Investor Relations
株主・投資家との関わり

However, the Chikuhou Office did open the plateau area near
the blueberry farm to 64 five- and six-year-olds from the preschoolin response to a request from the school, and to expose thechildren to nature as a way to restore their innate vigor.
The school later sent a report to the office expressing their
gratitude for giving the children more things to smile about. The
Chikuhou Office intends

地域社会との関わり

Basic Approach

The purpose of the IR activities of the Furukawa Company Group
is to provide corporate information including management policies,
business descriptions, business strategies, performance andfinancial information fairly, rapidly, and accurately; build trust-based
relationships through dialogue; and earn appropriate valuations ofways to contribute to thePrimary IR Activities

community while staying on
top of measures to preventthe spread of COVID-19.

Volunteer Cleanup Activities of the
Furukawa Company Group●Communication with Institutional Investors and Analysts●Communication with Individual Investors

We hold results briefings, individual IR meetings and small
meetings, distribute and publish annual reports (integrated
reports), hold tours of our plants and the like, conduct interview
surveys, and more as part of our IR activities.

We disclose information on our website, distribute and disseminate
convocation notices and reports for shareholders, email news
releases and updated information on IR sites, and more as part of
our IR activities.

furukawakk̲株通̲2020̲nyuko̲ol.pdf 1 2020/11/16 18:38

古河機械金属グループの価値創造プロセス

Each company in the Group implements volunteer cleanup activities

古河機械金属グループは、創業以来145年に及ぶ長い歴史の中で、創業当時の鉱山業から様々な事業転換・多角化等の変革がこの意を込めた経営理念を具現化するために、現在、創業150周年を迎える2025年度に向けた「2025年ビジョン」、
それを３つの図られ、幾度もの苦難の時代を乗り越えて、古河グループの源流企業として今日に歴史をつないでいます。創業者である古河市兵衛

フェーズに分けて「中期経営計画」を策定し、達成に向け邁進しています。長年培われた技術と新たな戦略を融合し、機械と素材を中の哲学を心に刻み、鉱山開発に始まり社会基盤を支えてきた技術等を、CSV ※の視点を織り込んだ「マーケティング経営」の実践により、

SDGs（持続可能な開発目標）
をはじめ、わが国における国土強靭化、生産年齢人口の減少など、様々な社会課題を解決し持続可能企業として、社会課題の解決に役立つインフラ整備、製品・技術・サービス等を提供することで「企業価値」を創造すると同時に、な社会の実現に貢献し続けていきます。これが経営理念を具現化するための当社グループの価値創造プロセスです。

銅山開発技術
採鉱技術

of Usuiso Beach in Iwaki City, Fukushima Prefecture. Amid these
戦略

Furukawa
SystemsCo., Ltd. participated after taking

children who attend Kotake Kodomo-en, a local preschool, tomeasures to prevent the spread of

the blueberry farm on company property. However, as a measure
to prevent the spread of the novel coronavirus, the office has

COVID-19.
Each company in the Group

closed the farm and ceased extending invitations for visits. The

intends to continue participating inpreschool has taken pandemic mitigation measures—which

activities once they resume, all the

include canceling field trips and closing playground equipment—

while faithfully implementing measuresthat have limited children’s opportunities to go outside.

to prevent the spread of COVID-19.

粉
技

製錬技術

ユニック部門

砕
術

排ガス
処理技術

産業機械部門

自熔製錬
技 術

硫酸製造
技 術

電子材料
技 術

金属部門

化成品部門

電子部門

製品
技術
サービス

「社会価値」
創造

社会インフラ整備
安全で環境に優しい豊かな社会
の実現

CSR
ESG

油圧ブレーカ、油圧圧砕機、油圧クローラドリル、
トンネル
工事・鉱山用機械の製造・販売。

ユニッククレーン、ミニ・クローラ
クレーン、船舶用クレーン、
ユニック
キャリア等の製造・販売。

ポンプ、破砕機等マテリアル
機械、橋梁、ベルトコンベヤ、
耐熱・耐摩耗鋳物等の製造・販売、各種工事請負。

委託製錬して生産された電気銅、
電気
金、
電気銀、硫酸等の販売。

硫酸、
ポリ硫酸第二鉄
水溶液、硫酸バンド、
亜酸化銅、酸化銅等の製造・販売。

素材事業

事業活動による「企業価値」創造

高純度金属ヒ素、結晶製品、コア・
コイル、窒化アル
ミニウム、光学部品等の製造・販売。

事業ポート
フォリオ
マネジメントリスク
マネジメント

社会課題
ニーズ

CSVの視点を織り込んだ

2

Each year, the Chikuhou Office of Furukawa Co., Ltd. invites

排水処理
技 術

機械事業

from the Tohoku Branch Office ofcompany

油圧制御
技 術

ロックドリル部門

ROE
ROA

basin in Sendai City, Miyagi Prefecture, was held, and nine people

Machinery

削術

2025年ビジョン
中期経営計画

People Project, which involves total cleanup of the Hirose RiverGroup

運搬・選鉱技術カテゴリートップ・オンリーワン
掘技

circumstances, the 29th installment of the Hirose River 10,000

Industries※ CSV（Creating Shared Value：共通価値 / 共有価値の創造）：企業が社会問題や環境問題などに関わる社会課題に取り組み、「社会価値」と「企業価値」
を両立させようとする経営フレームワーク。

経営理念
古河機械金属グループは、鉱山開発に始まり社会基盤を支えてきた技術を進化させ、常に挑戦する気概をもって社会に必要とされる企業であり続けます。

most annual activities were canceled, including volunteer cleanup

the

心とした事業活動に、
「ROE」
「ROA」
、
「事業ポートフォリオマネジメント」
、
「CSR」
、
「ESG」
、
「リスクマネジメント」、の要素を加味しながら、

顧客ニーズと社会課題に適合し信頼され魅力ある製品・サービスに革新し続けてきました。私たちは、「カテゴリートップ・オンリーワン」「社会インフラ整備」「安全で環境に優しい豊かな社会の実現」、という「社会価値」の創造に寄与し続けていきます。

as part of efforts to contribute to their communities. In fiscal 2021,

Contributing to the Community During the Pandemic

our corporate value in the stock market; all so that shareholders andinvestors have a proper understanding of the Group. In addition, ourbasic stance is to relay the opinions and desires of shareholders andinvestors with regard to the Group to management as feedback, andotherwise strive for sufficient two-way communication.

to continue searching forby stimulating communication with the community.” The company
intends to continue hosting these tours in the future.

Relevant
SDGs「マーケティング経営」

FURUKAWA CO., LTD.

Annual Report 2020

3

Providing Information Online
Front page

CSR activities (CSR report)

https://www.furukawakk.co.jp/e_index.htm

https://www.furukawakk.co.jp/e/csr/csr_activities/

TOPICS
Video depicting the Ashio Copper Mine at the Industrial Heritage Information Centre
A video depicting the Ashio Copper Mine opened to the public at the Industrial Heritage Information Centre in April 2021. The
Ashio Copper Mine was chosen as the subject of a video on nonferrous metals in fiscal 2021, and in response to a request fromthe Centre, Furukawa cooperated with tasks such as discussing the video composition and selecting photographs. The roughly
nine-minute video on the Ashio Copper Mine was completed this spring. The narrated video comprises 13 slides showing
enlarged photographs both recent and historical. The narration features commentary about the people who lived at the minein the late 19th and early 20th centuries, as well as each process from mining, dressing, and refining to transportation, power
generation, and more. The video also includes information about the company’s efforts to prevent pollution and examples of
the technology that propelled the company to the present day.
The Centre, which is operated by the National Congress of Industrial Heritage
under a contract from the Cabinet Secretariat, disseminates information about
Japan’s industrial heritages, namely “Sites of Japan’s Meiji Industrial Revolution:
Iron and Steel, Shipbuilding and Coal Mining,” a group of sites registered as
UNESCO World Heritages in July 2015. The video is part of a full exhibit ofvideos explaining heritages from Japan’s Meiji Revolution in addition to otherindustrial heritages, and is shown on the Liquid Galaxy, a stunning panoramicVideo depicting the Ashio Copper Mine, now open totheater consisting of seven large displays.

Investor relations (IR Library, financial results briefing materials)
https://www.furukawakk.co.jp/e/ir/

the public at the Industrial Heritage Information Centre
Financial results briefing videos have been distributed since fiscal 2021.

35

36

Corporate Information
Business Domain

Company Name:
Furukawa Co., Ltd.
Head Office:	Tokiwabashi Tower, 6-4, Otemachi
2-chome, Chiyoda-ku, Tokyo 100-8370,
Japan
Representative:	Minoru Nakatogawa, President andRepresentative Director
Date of Foundation:
August 1875
Date of Establishment: April 1918
Business:	Machinery business (Industrial Machinery,
Rock Drill Machinery, Unic Machinery),Materials business (Metals, Electronics,
Chemicals), Real Estate business (Real
Estate, etc.)
Capital:	¥28,208.18 million (as of March 31, 2021)
Fiscal Year-end:
March 312,752 (consolidated) (as of March 31, 2021)
Employees:	

Financial Data (consolidated)●Net Sales

Furukawa Industrial
Machinery Systems
Co., Ltd.

Industrial
Machinery
Machinery businessCompany Profile (as of September 30, 2021)

1,741

1,498

1,652

1,597

MetalsFurukawa Metals &Resources Co., Ltd.

Materials business

⑦1.3%

⑤3.6%

⑧0.4%

①Industrial Machinery

①

10.5%
②

0

2017

2018

2019

2020

2021

15.1%

Net sales

47.7% ¥159.7 billion
③

17.4%

⑥Chemicals⑦Real Estate⑧Others

Furukawa Co., Ltd.

74
47

46

●Principal Shareholders

Number of shareholders:●Composition of Shareholders
Securities companies

1.59 %
Foreign institutions

15.33%
Other Japanesecompanies

25.38%

37

Number Percentageof sharesof Total(thousands) Shares (%)

19,987

6.35

Asahi Mutual Life Insurance Co.

2,373

6.07

Seiwa Building Co., Ltd.

1,935

4.95

(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen) NetNet(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen)
Sales
NetSalesNet
Sales
SalesOperating
OperatingOperatingOperating
IncomeIncomeIncomeIncome(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen) NetNet(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen)
Sales
NetSalesNet
Sales
SalesOperating
OperatingOperatingOperating
IncomeIncomeIncomeIncome

3,500
3,500
3,500
3,500
34,00034,00034,00034,000
3,000
3,000
3,000
3,000
23,237
23,237
23,237
23,237
Custody
Bank of Japan,
Ltd.30,1(trust
account)
30,37230,372
30,
99
30,
199
130,37230,
9930,372
199
27,663
27,663
27,663
27,663
26,97926,97926,97926,979
3,208
3,208
3,208
3,208
24,14924,14924,14924,14925,50025,50025,50025,500
2,250
2,250
2,250
2,250
Treasurystock
The 2,800
Yokohama
Rubber Co., 1,782
Limited
1,782
1,782
1,782
20,00020,00020,00020,000
2,800
2,800
2,800
1,689
1,689
1,689
1,689
17,971
17,971
17,971
17,971
16,682
16,682
16,682
16,682%
15,871
15,871
15,871
15,871
17,00017,00017,000
1,500
1,500
1,500
1,500
Furukawa
Electric 17,000
Co.,
Ltd.
897897897897
15,00015,00015,00015,000
2,100
2,100
2,100
2,100
14,041
14,041
14,041
14,041
25,00025,00025,00025,000

2017

2018

2019

2020

(Millions(Millions(Millionsof yen)of yen)of yen)Net
NetSalesNet
Sales
Sales Operating
OperatingOperating
IncomeIncomeIncome
3,500
3,500
3,500
23,237
23,237
23,237

3.38

Individuals
and others

2,113
2,113
2,113
2,088
2,088
2,088
2,0882,113

10,00010,00010,00010,00024.67%

1,005
1,005
1,005
1,005
5,000
5,000
5,000
5,000
104104104104

8,500
8,500
8,500
8,500
Fuji Electric Co., Ltd.
1,400
1,400
1,400
1,400

0 00 0

Sompo Japan Insurance Inc.
7007007007001421421421427507507507500 00 0-750-750-750-750

Kawashima Co., Ltd.
Financial(1,324)(1,324)(1,324)(1,324)0 00 00 00 0-1,500-1,500-1,500-1,500institutions
2017
2017
2017
2018
2017
2018
2018
2019
2018
2019
2019
2020
2019
2020
2020
2021
2020
2021
2021
2021Real Estate Co., Ltd.
2017
2017
2017
2018
2017
2018
2018
2019
2018
2019
2019
2020
2019
2020
2020
2021
2020
2021
2021
2021
Chuo

29.65 %(FY)(FY)(FY)(FY)(FY)(FY)(FY)(FY)

20,00020,00020,00020,000839
10,00010,00010,00010,000

1,400
1,400
1,400
1,400

5,000
5,000
5,000
5,000
756

1.93

42.0

2,153

2017

1,000

870
795

36.3

2019

2020

2021

35

36.0

943
804

8.9

779

(FY)

Return on Equity
(ROE)

400
200

(%)

10.0
9.0
8.0

600

2,182

38.3

2018

(100 millions of yen)

800

2,096
40

2021

0

(FY)

2017

2018

5.9

5.9

7.0

5.7

2019

2020

0

30

2021

(FY)

2017

2018

2019

●Rock Drill Machinery●Unic Machinery(Millions(Millions(Millionsof yen)of yen)of yen)

(Millions(Millions(Millionsof yen)of yen)of yen)Net
NetSalesNet
Sales
Sales Operating
OperatingOperating
IncomeIncomeIncome
3,000
3,000
3,000
30,37230,372
30,
30,
199
130,
99130,372
99
27,663
27,663
27,663
26,97926,97926,97924,14924,14924,14925,50025,50025,500
2,250
2,250
2,250
1,782
1,782
1,782
1,689
1,689
1,689

(Millions(Millions(Millionsof yen)of yen)of yen)

(Millions(Millions(Millionsof yen)of yen)of yen)

34,00034,00034,00035,00035,00035,000100,000
100,000
100,000

17,00017,00017,000897
897897

1,500
1,500
1,500

8,500
8,500
8,500

750
750750(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen) NetNet(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen)
Sales
NetSalesNet
Sales
SalesOperating
OperatingOperatingOperating
IncomeIncomeIncomeIncome100,000
100,000
100,000
100,000

3,000
3,000
3,000
3,000

80,06780,06780,06780,067
77,334
77,334
77,334
77,33476,09476,09476,09476,09475,00075,00075,00075,000
2,250
2,250
2,250
67,167,
4967,
149
149
67,149 2,250
67,85367,85367,85367,8537007007007000 00 00 00 0
2017
2018
2017
2018
2018
2019
2018
2019
2019
2020
2019
2020
2020
2021
2020
2021
2021
2021
687 20172017
1.75(FY)(FY)(FY)(FY)

50,00050,00050,00050,000
1,738
1,738
1,738
1,738

25,00025,00025,00025,000142142142

00 0

00 0
-750
-750-750(1,324)(1,324)(1,324)-1,500-1,500-1,500
2017
2017
2017
2018
2018
2018
2019
2019
2019
2020
2020
2020
2021
2021
2021

6.0

2020

2021

5.0
(FY)

7507507507504994994994993013013013015815815815810 00 00 00 0
2017
2017
2017
2018
2017
2018
2018
2019
2018
2019
2019
2020
2019
2020
2020
2021
2020
2021
2021
2021
(FY)(FY)(FY)(FY)

2,578
2,578
2,578
15,00015,00015,000
2,295
2,295
2,295

2,100
2,100
2,100

10,00010,00010,000

1,400
1,400
1,400

5,000
5,000
5,000

700
700700

00 0
00 0
2017
2017
2017
2018
2018
2018
2019
2019
2019
2020
2020
2020
2021
2021
2021

8,000
8,000
8,000
8,000

3,000
3,000
3,000
3,000

6,527
6,527
6,527
6,527
6,307
6,307
6,307
6,307
5,816
5,816
5,816
5,816
5,741
5,741
5,741
5,741
6,000
6,000
6,000
6,000
2,250
2,250
2,250
2,250
5,506
5,506
5,506
5,506
4,000
4,000
4,000
4,000

1,500
1,500
1,500
1,500

2,000
2,000
2,000
2,000

75075075075040740733033033040733040717 1717 17
0 00 00 00 0(35)(35)(35)161(35)161
161161-750-750-750-750
2017
2017
2017
2018
2017
2018
2018
2019
2018
2019
2019
2020
2019
2020
2020
2021
2020
2021
2021
2021
(FY)(FY)(FY)(FY)

600600600600

6,710
6,710
6,710
6,710
6,344
6,344
6,344
6,344
6,367
6,367
6,127
6,16,27
127
6,127 6,367
6,367510510510510
6,000
6,000
6,000
6,000
450450450450
5,298
5,298
5,298
5,298
451451451451406406406406380380380380
4,000
4,000
4,000
4,000
300300300300

2,000
2,000
2,000
2,000

8,000
8,000
8,

75,00075,00075,00067,85367,85367,85376,09476,09476,094
2,250
2,250
2,250
67,67,
149
167,
49149

50,00050,00050,000
1,738
1,738
1,738

1,500
1,500
1,500

6,000
6,000
6,

4,000
4,000
4,

2,000
2,000
2,
25,00025,00025,000750750499
499499750
301
301301581
581581867
867867

00

00 0
00 0
2017
2017
2017
2018
2018
2018
2019
2019
2019
2020
2020
2020
2021
2021
2021
(FY)
(FY)(FY)●Real Estate(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen) NetNet(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen)
Sales
NetSalesNet
Sales
SalesOperating
OperatingOperatingOperating
IncomeIncomeIncomeIncome

8,000
8,000
8,000
8,000

(Millions(Millions(Millionof yenof y80,06780,06780,067
77,334
77,334
77,334(FY)(FY)(FY)●Chemicals(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen) NetNet(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen)
Sales
NetSalesNet
Sales
SalesOperating
OperatingOperatingOperating
IncomeIncomeIncomeIncome(Millions(Millions(Millionsof yen)of yen)of yen)Net
NetSalesNet
Sales
Sales Operating
OperatingOperating
IncomeIncomeIncome
3,000
3,000
3,000

3,180
3,180
3,180
2,800
2,800
2,800
2,789
2,789
2,789

(FY)
(FY)(FY)

1,500
1,500
1,500
1,500

867867867867(Millions(Millions(Millionsof yen)of yen)of yen)Net
NetSalesNet
Sales
Sales Operating
OperatingOperating
IncomeIncomeIncome
4,900
4,900
4,900
31,791
31,791
31,791
29,237
29,237
29,23730,00030,00030,000
4,200
4,200
4,200
27,80427,80427,804
27,381
27,381
27,38125,78225,78225,782
3,992
3,992
3,992
25,00025,00025,000
3,500
3,500
3,500

20,00020,00020,000●Electronics

3,180
3,180
3,180
3,180
2,800
2,800
2,800
2,800
2,100
2,100
2,100
2,100

2.14

67

●Net Assets / Return on Equity (ROE)
(%)

2,222

0

(FY)

45

700
700700●Metals

2,789
2,789
2,789
2,789
862
2.20
2,578
2,578
2,578
2,578
15,00015,00015,00015,000
2,295
2,295
2,295
2,295

2021

2,000

(FY)
(FY)(FY)

4.32

2.24

1,005
1,005
1,005

00 0
00 0
2017
2017
2017
2018
2018
2018
2019
2019
2019
2020
2020
2020
2021
2021
2021

4,900
4,900
4,900
4,900
31,791
31,791
31,791
31,791
29,237
29,237
29,237
29,23730,00030,00030,00030,000
4,200
4,200
4,200
4,200
27,80427,80427,80427,804
27,381
27,381
27,381
27,381
1,341 25,782
3.43
25,78225,78225,782
3,992
3,992
3,992
3,992 3,500
25,00025,00025,00025,000
3,500
3,500
3,500

877

1,400
1,400
1,400

5,000
5,000
5,000
104
104104(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen) NetNet(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen)
Sales
NetSalesNet
Sales
SalesOperating
OperatingOperatingOperating
IncomeIncomeIncomeIncome35,00035,00035,00035,0001,688

2020

Equity Ratio

10,00010,00010,000

2,482

2019

1,000

2,800
2,800
2,800
17,971
17,971
17,971
16,682
16,682
16,682
15,871
15,871
15,871
15,00015,00015,000
2,100
2,100
2,100
14,041
14,041
14,041
2,113
2,113
2,088
2,088
2,088 2,113

The Master Trust Bank of Japan, Ltd. (trust account)

2018

44

20,00020,00020,00040,445,568

81

Net Sales and Operating Income by Segment

Stock Conditions (as of March 31, 2021)

Number of shares outstanding:

2017

37.3

3,208
3,208
3,208

Name

82

5.8

25,00025,00025,00080,000,000

2030(Millions(Millions(Millionsof yen)of yen)of yen)

Number of shares authorized:

20

3,000

●Industrial Machinery●Shares

40(100 millions of yen)

90

Furukawa Chemicals
Co., Ltd.

Real Estate
and Others

40

2,080

0

⑤Electronics

81
72

60

●Total Assets/ Equity Ratio(100 millions of yen)

④Metals④(FY2021)③Unic Machinery

55

0

(FY)

●Profit Attributable to Owners of Parent

42

Chemicals

80

60

60

②Rock Drill Machinery

78

1,000

Furukawa Denshi
Co., Ltd.

Electronics

Real Estate, etc.

⑥4.0%

86

65

120

Departmental Sales Ratio

100

89

80

500

Furukawa UnicCorporation(100 millions of yen)

100

1,676

Furukawa Rock Drill
Co., Ltd.

Unic
Machinery●Ordinary Income(100 millions of yen)

2,000

1,500

Rock Drill
Machinery●Operating Income(100 millions of yen)

150150150150114114114114
0 00 00 00 0
2017
2017
2017
2018
2017
2018
2018
2019
2018
2019
2019
2020
2019
2020
2020
2021
2020
2021
2021
2021
(FY)(FY)(FY)(FY)(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen) NetNet(Millions(Millions(Millionsof yen)(Millionsof yen)of yen)of yen)
Sales
NetSalesNet
Sales
SalesOperating
OperatingOperatingOperating
IncomeIncomeIncomeIncome

3,600
3,600
3,600
3,600

3,000
3,000
3,000
3,000

3,338
3,338
3,338
3,338
3,074
3,074
3,074
3,074 2,999
2,999
2,999
2,999

2,700
2,700
2,700
2,700

2,386
2,386
2,386
2,386

2,250
2,250
2,250
2,250

2,107
2,107
2,107
2,107
1,800
1,800
1,800
1,800

1,500
1,500
1,500
1,500

1,339
1,339
1,339
1,339
1,265
1,265
1,265
1,265
1,163
1,11,63163
1,163
9009009009007507507507507357357357367357367367360 00 00 00 0
2017
2017
2017
2018
2017
2018
2018
2019
2018
2019
2019
2020
2019
2020
2020
2021
2020
2021
2021
2021
(FY)(FY)(FY)(FY)

Notes: 1. The Company holds 1,369,919 treasury shares. However, it is excluded from principal
shareholders listed as above.
2. The shareholding ratio is calculated after deducting treasury shares (1,369,919
treasury shares).

38